UTM FLNG Secures 15-Year Gas Supply Agreement in Nigeria

UTM Floating Liquefied Natural Gas (FLNG) has secured a significant 15-year gas supply agreement, which is expected to unlock financing for Nigeria's first indigenous floating LNG project. The landmark sale and purchase agreement was signed during the NOG Energy Week in Abuja.

The deal involves a commitment from NNPC and Seplat Energy to supply 200 million standard cubic feet of gas per day over the 15-year period. Bayo Ojulari, Group Chief Executive Officer of NNPC, described the agreement as a major breakthrough in Nigeria's efforts to commercialize its vast gas resources and deepen domestic gas utilization.

The agreement aligns with President Bola Tinubu's vision to expand gas utilization and is expected to create employment opportunities while strengthening Nigeria's competitiveness in the global LNG market. Juliu Rone, Group Managing Director and Chief Executive Officer of UTM Offshore Limited, emphasized that the agreement establishes a framework for long-term supply commitments necessary to advance financing and construction of the project, which is projected to achieve final investment decisions by the fourth quarter of 2026.