UTM FLNG Limited has signed a 15-year Wet Gas Sale and Purchase Agreement with the NNPC/SEPNU Joint Venture for the supply of 200 million standard cubic feet of gas per day to Nigeria’s first indigenous floating liquefied natural gas project.
The agreement was signed during the NOG Energy Week 2026 in Abuja and is expected to support the development of the UTM Floating LNG project, a major gas investment aimed at boosting Nigeria’s position in the global LNG market.
The deal will provide feed gas for the UTM FLNG facility, helping to unlock Nigeria’s large gas reserves and support the country’s wider plan to use gas as a driver of industrial growth, energy access and cleaner fuel development.
Deal supports Nigeria’s gas agenda
Speaking at the signing ceremony, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, said the agreement aligns with the Federal Government’s push to increase gas utilisation by 2030.
He said the deal also supports Nigeria’s Decade of Gas vision and the country’s plan to use its gas resources to drive industrialisation and energy transition.
According to Ojulari, the project will create jobs, deepen local content participation, support cleaner energy use and strengthen Nigeria’s competitiveness in the global LNG market.
He described the signing as more than a commercial agreement, saying it represented a strong commitment to using gas to support Nigeria’s growth and long-term energy future.
Ojulari added that the agreement gives the UTM FLNG project a clearer path towards reaching Final Investment Decision in the fourth quarter of 2026.
UTM says agreement strengthens project financing
The Group Managing Director and Chief Executive Officer of UTM Offshore Limited, Julius Rone, said the agreement provides the commercial structure needed to move the project forward.
According to him, the deal establishes a framework for the supply of feed gas to the floating LNG facility and gives the project the certainty required for financing, construction and future operations.
Rone said the long-term offtake arrangement would help create predictable revenue streams, assure buyers of stable LNG supply and give lenders more confidence in the project’s commercial viability.
The agreement is seen as a major step for UTM FLNG, which has been working to develop Nigeria’s first locally promoted floating LNG project.
FG backs private sector role in gas development
The Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, said the signing showed the growing strength of local content and private sector participation in Nigeria’s gas sector.
He said the agreement also reflected rising investor confidence in Nigeria’s gas market, supported by reforms, policy stability and fiscal incentives being promoted by the Ministry of Petroleum Resources and its agencies.
Ekpo said the Federal Government would continue to support partnerships that can help Nigeria unlock more value from its gas resources.
He added that government would prioritise infrastructure development, clearer regulation and incentives that can help position Nigeria as a gas-powered economy.
About the UTM FLNG project
The UTM FLNG project began in 2021 and received a Licence to Establish from the former Department of Petroleum Resources, now the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The feed gas for the project will come from OML 104, also known as the Yoho Field, located offshore Akwa Ibom State.
The gas will be processed and liquefied on the UTM FLNG vessel, which is designed to have a capacity of 1.8 million tonnes per annum.
The project completed its Pre-Front End Engineering Design in 2021, while the Front End Engineering Design was completed in October 2023 by JGC and Technip Energies. KBR was also appointed as the Owner’s Engineer for the project.
In 2024, the Nigerian Midstream and Downstream Petroleum Regulatory Authority issued UTM FLNG Limited a Licence to Construct.
The Nigerian Content Development and Monitoring Board also approved the Nigerian Content Plan for the Engineering, Procurement and Construction phase of the project in 2024.
Ownership and project outlook
UTM FLNG Limited is owned by three major shareholders. NNPC Limited holds 20 percent equity, UTM Offshore Limited holds 72 percent, while the Delta State Government owns 8 percent.
The company has said the project will follow international best practices in safety, environmental management, sustainability and governance.
It also said the project will apply strong emissions controls and work with experienced contractors and technical partners to ensure proper delivery.
If completed as planned, the UTM FLNG project could become a landmark project in Nigeria’s gas sector. It would not only expand the country’s LNG production capacity but also show how local companies can play a larger role in developing major energy infrastructure.
