Nigeria has taken another major step toward expanding its gas industry following the signing of a 15-year Wet Gas Sale and Purchase Agreement between the NNPC/SEPNU Joint Venture and UTM FLNG Ltd, the country’s first indigenous floating liquefied natural gas (FLNG) company.
Under the agreement, UTM FLNG will receive 200 million standard cubic feet of gas per day (mmscf/d), a move expected to strengthen gas utilisation and unlock greater value from Nigeria’s vast natural gas reserves.
Speaking during the signing ceremony at the NOG Energy Week Conference in Abuja, Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, described the agreement as a significant milestone in advancing the Federal Government’s target of increasing gas utilisation by 2030 under the Decade of Gas initiative.
He noted that the project would support industrial growth, create employment opportunities, boost local content development, enhance Nigeria’s competitiveness in the global liquefied natural gas market, and contribute to lower carbon emissions through cleaner energy.
Ojulari also said the agreement paves the way for the UTM Floating LNG Project to achieve its Final Investment Decision (FID) in the fourth quarter of 2026, describing the deal as a major commitment to driving Nigeria’s economic growth and energy future through gas development.
Also speaking, the Group Managing Director and Chief Executive Officer of UTM Offshore Ltd, Julius Rone, explained that the agreement provides the framework for supplying feed gas to the floating LNG facility while establishing long-term offtake arrangements. According to him, the certainty created by the deal is expected to facilitate financing, construction and operational activities, while providing stable revenue projections and boosting investor confidence in the project’s long-term sustainability.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the agreement reflects the growing role of indigenous companies and private sector investment in Nigeria’s gas industry. He added that ongoing government reforms, improved policy stability and fiscal incentives have continued to strengthen investor confidence in the sector.
Ekpo reaffirmed the Federal Government’s commitment to creating an enabling environment for large-scale investments through improved infrastructure, regulatory certainty and incentives aimed at positioning Nigeria as a gas-powered economy.
The UTM FLNG project began in 2021 after receiving a Licence to Establish from the country’s petroleum regulator. Gas for the project will come from the Yoho Field in OML 104, offshore Akwa Ibom State, and will be processed by a floating LNG facility with a production capacity of 1.8 million tonnes per annum.
Project engineering activities have progressed steadily, with both the Pre-Front End Engineering Design and Front End Engineering Design completed, while regulatory approvals, including the Licence to Construct and the Nigerian Content Plan, have also been secured.
Project promoters said the floating LNG facility will operate in line with global environmental, safety and governance standards, incorporating advanced emissions control systems and internationally recognised project delivery practices.
The ownership structure of UTM FLNG Ltd comprises NNPC Ltd with a 20 per cent stake, UTM Offshore Ltd with 72 per cent, and the Delta State Government holding the remaining 8 per cent.
