Follow Us on Google
The Pan-Niger Delta Forum (PANDEF) has commended President Bola Ahmed Tinubu for facilitating a landmark 15-year gas supply agreement for the UTM Floating Liquefied Natural Gas (FLNG) project, describing the deal as a major boost for Nigeria’s energy sector and the economic transformation of the Niger Delta.
The agreement guarantees the supply of 200 million standard cubic feet of gas daily to the facility, clearing a critical hurdle to the development of Nigeria’s first indigenous floating LNG plant.
Signed during NOG Energy Week in Abuja, the Wet Gas Sale and Purchase Agreement between the NNPC/Seplat Energy Joint Venture and UTM FLNG Limited addresses one of the key requirements for the project’s Final Investment Decision (FID).
PANDEF said the development would strengthen indigenous participation in the oil and gas industry, attract fresh investments, create thousands of jobs and accelerate industrialisation across the Niger Delta.
The forum also noted that the project could significantly boost domestic gas utilisation, reduce gas flaring, lower carbon emissions and expand access to cleaner cooking fuel, particularly liquefied petroleum gas (LPG), for millions of Nigerians.
Group Managing Director of UTM FLNG, Julius Rone, attributed the breakthrough to President Tinubu’s aggressive implementation of the Federal Government’s “Decade of Gas” initiative, saying the project demonstrates what indigenous companies can achieve when supported by deliberate policy and strong political will.
PANDEF echoed the commendation, saying the agreement reflects the administration’s efforts to create an enabling environment for major investments in the Niger Delta.
The forum stressed that empowering indigenous operators remains critical to unlocking the region’s economic potential while promoting sustainable development, employment and long-term peace in the oil-rich Niger Delta.
Beyond the immediate investment impact, the UTM FLNG project is expected to generate substantial foreign exchange through future LNG exports while strengthening Nigeria’s energy security and domestic gas economy.
With the 15-year gas supply now secured, developers are expected to accelerate the project’s timeline towards the Final Investment Decision and eventual commencement of operations.
For PANDEF, the agreement goes beyond securing gas for a major project; it marks a significant step towards harnessing the Niger Delta’s resources for greater economic value, local participation and national development.
