Nigeria’s UTM Offshore Signs 15-Year Gas Supply Agreement for $3bn FLNG Project
admin 
UTM Offshore has secured a 15-year gas supply agreement, clearing a major hurdle toward the final investment decision (FID) for its $3 billion Floating Liquefied Natural Gas (FLNG) project, which is now expected in the fourth quarter of 2026.
The agreement provides for a joint venture between NNPC Ltd and Seplat Energy Producing Nigeria Unlimited to supply 200 million standard cubic feet (5.7 million cubic metres) of gas per day to the FLNG facility. The project will process gas from the Yoho field and is designed to produce 1.8 million tonnes of LNG annually.
According to UTM Offshore CEO Julius Rone, the agreement establishes the long-term gas supply framework needed to support project financing, construction, and operations. He added that it provides greater certainty for investors, lenders, and LNG buyers ahead of the anticipated final investment decision.
The FLNG project, in which UTM Offshore holds a 72% stake, NNPC Ltd owns 20%, and the Delta State Government holds 8%, received Nigeria’s first licence for a floating LNG export facility in 2024. The project is expected to help commercialize Nigeria’s stranded gas reserves and strengthen the country’s LNG export capacity.
