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Nigeria’s drive to monetise its vast natural gas resources received a major boost on Tuesday as UTM Floating Liquefied Natural Gas (UTM FLNG) Limited signed a 15-year Wet Gas Sale and Purchase Agreement (GSPA) with the NNPC/Seplat Energy Joint Venture (SEPNU), securing feed gas for the country’s first indigenous floating liquefied natural gas (FLNG) project.
The agreement, signed on the sidelines of the Nigeria Oil and Gas (NOG) Energy Week Conference in Abuja, provides for the supply of 200 million standard cubic feet of gas per day (mmscf/d) to the UTM FLNG facility over a 15-year period.
The deal is expected to provide the long-term feed gas security required to advance financing, construction and operations of the 1.8 million tonnes per annum (MTPA) floating LNG project, while strengthening investor confidence ahead of the project’s Final Investment Decision (FID), which is targeted for the fourth quarter of 2026.
Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, described the agreement as a landmark milestone for Nigeria’s gas industry and a demonstration of the Federal Government’s commitment to accelerating gas utilisation.
According to him, the agreement aligns with the Presidential mandate to significantly increase domestic gas utilisation by 2030 under the Decade of Gas initiative.
Ojulari said the project would not only deepen Nigeria’s participation in the global liquefied natural gas market but also contribute to industrialisation, economic growth and lower carbon emissions.
He noted that the gas supply agreement establishes a predictable revenue framework for the FLNG project, provides assurance of stable LNG supplies for buyers and offers lenders the confidence needed to support the project’s financing.
“Today’s signing is not just an agreement—it is a declaration of intent to power Nigeria’s growth, prosperity, and energy future through gas,” he said.
Also speaking, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the agreement as another major step towards achieving Nigeria’s gas commercialisation and energy transition objectives.
He said the project would support the Federal Government’s industrialisation agenda by creating jobs, promoting local content development and attracting fresh investments into the gas value chain.
Ekpo reinstated the federal government’s commitment to creating an enabling environment for transformative investments through improved infrastructure, regulatory certainty and investor-friendly fiscal policies.
According to him, the government will continue to prioritise reforms that position Nigeria as a gas-powered economy capable of competing effectively in global energy markets.
Promoter and Shareholder of UTM FLNG Limited, Mr. Julius Rone, said the signing marks a significant milestone in the development of the country’s first indigenous floating LNG project.
He noted that securing long-term gas supply is one of the critical requirements for reaching Final Investment Decision, adding that the agreement substantially de-risks the project and enhances its commercial viability.
Rone said the deal also demonstrates the growing confidence of investors, financial institutions and industry stakeholders in Nigeria’s gas sector, driven by ongoing policy reforms and regulatory stability.
He added that the project reflects the increasing role of indigenous companies in leading strategic investments capable of unlocking the country’s enormous gas potential.
The feed gas for the project will be sourced from Oil Mining Lease (OML) 104, specifically the Yoho Field located offshore Akwa Ibom State. The gas will be processed and liquefied aboard the UTM FLNG vessel, which has a production capacity of 1.8 million tonnes of LNG annually.
The UTM FLNG project commenced in 2021 and has since recorded significant milestones.
The project received its Licence to Establish (LTE) from the former Department of Petroleum Resources (DPR), now the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). In 2024, the NMDPRA also granted the company a Licence to Construct (LTC), while the Nigerian Content Development and Monitoring Board (NCDMB) approved its Nigerian Content Plan for the Engineering, Procurement and Construction phase.
The project’s Pre-Front-End Engineering Design (Pre-FEED) was completed in 2021, while the Front-End Engineering Design (FEED) was concluded in October 2023 by JGC Corporation and Technip Energies. KBR serves as the Owner’s Engineer.
The company said the project will be developed in line with international environmental standards, incorporating robust emissions control systems, strong governance practices and world-class project management to ensure safe and sustainable operations.
Under the shareholding structure, NNPC Limited holds a 20 per cent equity stake in UTM FLNG Limited, while UTM Offshore Limited owns 72 per cent and the Delta State Government holds the remaining 8 per cent.
Industry stakeholders believe the gas supply agreement marks a significant milestone in Nigeria’s ambition to unlock greater value from its vast gas reserves, deepen local participation in the energy sector and strengthen the country’s position as a competitive supplier in the global LNG market.
