Nigeria has moved closer to commercialising its natural gas resources following the signing of a 15-year Wet Gas Sale and Purchase Agreement (WGSPA) between the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture and UTM FLNG Ltd.
Under the agreement, the joint venture will supply 200 million standard cubic feet of gas per day (mmscf/d) to the UTM Floating LNG (FLNG) project, providing the long-term feedgas supply required to support project financing and pave the way for a Final Investment Decision (FID), targeted for the fourth quarter of 2026.
In a statement issued on Friday, NNPC Ltd’s Chief Corporate Communications Officer, Andy Odeh, said the agreement was signed at the NNPC Towers in Abuja on Tuesday.
He described the agreement as a significant milestone for Nigeria’s gas sector, saying it supports efforts to commercialise stranded gas reserves, expand liquefied natural gas (LNG) exports, promote industrialisation and advance the Federal Government’s Decade of Gas initiative.
The agreement was signed by the Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, and the Group Managing Director and Chief Executive Officer of UTM Offshore Ltd, Julius Rone.
Speaking at the signing ceremony, Ojulari said the agreement aligns with the Federal Government’s target of increasing gas utilisation by 2030 and supports Nigeria’s gas-driven economic transformation.
He said the project would contribute to economic growth, industrial development and energy security, while creating jobs, deepening local content, strengthening Nigeria’s position in the global LNG market and supporting lower carbon emissions through increased use of natural gas.
Rone said the agreement provides the commercial framework needed to move the UTM FLNG project into its next phase.
According to him, the long-term gas supply arrangement provides certainty for project financing, construction and operations, while giving confidence to investors, lenders and prospective LNG buyers.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the agreement as a reflection of growing investor confidence in Nigeria’s gas sector and the impact of ongoing industry reforms.
He said the partnership underscores the increasing role of indigenous companies and private sector investment in developing the country’s gas resources, adding that policy reforms and fiscal incentives introduced by the Federal Government have strengthened investor confidence.
The UTM FLNG project, which commenced in 2021, received a Licence to Establish from the former Department of Petroleum Resources, now the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and was granted a Licence to Construct in 2024.
The project will source feedgas from Oil Mining Lease (OML) 104, also known as the Yoho Field, offshore Akwa Ibom State, where it will be processed aboard a floating LNG facility with a production capacity of 1.8 million tonnes per annum.
According to the statement, project development has progressed steadily, with the pre-Front-End Engineering Design (Pre-FEED) completed in 2021, the Front-End Engineering Design (FEED) completed in October 2023 by JGC and Technip Energies, KBR appointed as Owner’s Engineer, and the Nigerian Content Development and Monitoring Board approving the Nigerian Content Plan for the engineering, procurement and construction phase in 2024.
NNPC Ltd said UTM FLNG is committed to delivering the project in line with international standards on safety, environmental management, sustainability and corporate governance.
