The Pan Niger Delta Forum (PANDEF) and the Group Managing Director of UTM Floating Liquefied Natural Gas (FLNG) Limited, Julius Rone, have commended President Bola Ahmed Tinubu following the signing of a 15-year gas supply agreement for the UTM FLNG project.
They described the agreement as a significant milestone for Nigeria’s gas industry and a boost for indigenous participation in the country’s energy sector.
The agreement was signed during Nigerian Oil and Gas (NOG) Energy Week in Abuja, providing for the supply of 200 million standard cubic feet of gas per day to the UTM FLNG facility.
It was executed through a Wet Gas Sale and Purchase Agreement between the NNPCL/Seplat Energy joint venture and UTM FLNG Limited.
Reacting to the development, PANDEF said the long-term agreement represented an important step towards unlocking the economic potential of the Niger Delta through greater participation by indigenous companies in the oil and gas industry.
The forum said the agreement had addressed the major gas supply hurdle standing in the way of the project’s Final Investment Decision (FID).
According to PANDEF, the project could help expand domestic gas utilisation, curb gas flaring, generate employment and increase foreign exchange earnings through LNG exports.
The group also credited the Tinubu administration with providing the political support and investment environment needed to advance the agreement, stressing that continued backing for indigenous investors would be essential to industrialisation and sustainable economic development in the Niger Delta.
Rone, meanwhile, linked the development to the administration’s commitment to Nigeria’s ‘Decade of Gas’ initiative.
He described the signing as a historic development for both the UTM FLNG project and Nigeria’s wider energy sector.
‘The successful execution of this 15-year gas supply agreement is a historic milestone not only for the UTM FLNG project but also for Nigeria’s energy sector,’ Rone said.
He added that the agreement reflected the confidence generated by government policies and demonstrated the potential of indigenous companies when provided with the necessary institutional support and political backing.
The UTM FLNG project is expected to contribute to Nigeria’s efforts to increase gas utilisation and expand its participation in the global LNG market.
