Nigeria has moved closer to unlocking its vast natural gas potential following the signing of a landmark 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.
The agreement, signed on Tuesday at the NNPC Towers in Abuja, commits the joint venture to supply 200 million standard cubic feet of gas per day (mmscf/d) to the UTM Floating Liquefied Natural Gas (FLNG) project. The long-term gas supply is expected to provide the certainty required to secure project financing and pave the way for a Final Investment Decision (FID) targeted for the fourth quarter of 2026.
The deal is regarded as a major milestone in Nigeria’s efforts to commercialise stranded gas reserves, expand liquefied natural gas exports, promote industrialisation, and accelerate the Federal Government’s “Decade of Gas” initiative.
The agreement was signed by the Group Chief Executive Officer of NNPC Ltd, Engr. Bayo Ojulari, and the Group Managing Director/Chief Executive Officer of UTM Offshore Ltd, Mr. Julius Rone.
Speaking at the signing ceremony, Ojulari described the agreement as a strategic step towards achieving the Presidential mandate of increasing gas utilisation by 2030 and driving Nigeria’s gas-led economic transformation.
According to him, the partnership goes beyond a commercial arrangement, representing a commitment to harness Nigeria’s abundant gas resources to stimulate economic growth, enhance industrial development, improve energy security, and create shared prosperity.
He added that the project is expected to generate employment opportunities, boost local content development, strengthen Nigeria’s position in the global LNG market, and support cleaner energy through increased natural gas utilisation.
On his part, Julius Rone said the agreement provides the commercial framework required to move the UTM FLNG project into its next phase.
He noted that the execution of the agreement provides the long-term feedgas certainty needed to support financing, construction, and operations while giving investors, lenders, and LNG buyers confidence in the project’s viability.
Also speaking, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the agreement as a reflection of growing investor confidence in Nigeria’s gas industry and the positive impact of ongoing reforms in the sector.
He said the partnership highlights the increasing contribution of indigenous companies and private-sector investment in unlocking Nigeria’s gas resources, adding that policy stability and fiscal incentives introduced by the Federal Government have continued to attract investment.
The UTM FLNG project, which commenced in 2021, has recorded significant progress. It received a Licence to Establish from the former Department of Petroleum Resources, now the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and obtained a Licence to Construct in 2024.
The project will source gas from the Yoho Field (OML 104) offshore Akwa Ibom State, where it will be processed aboard a floating LNG facility designed to produce 1.8 million tonnes of LNG annually.
Key development milestones already achieved include the completion of Pre-FEED in 2021, Front-End Engineering Design (FEED) in October 2023 by JGC and Technip Energies, the appointment of KBR as Owner’s Engineer, and approval of the Nigerian Content Plan for the EPC phase by the Nigerian Content Development and Monitoring Board in 2024.
UTM FLNG has pledged to deliver the project in line with global standards in safety, environmental management, sustainability, and corporate governance.
The shareholding structure of UTM FLNG Ltd comprises NNPC Ltd with 20 per cent equity, UTM Offshore Ltd holding 72 per cent, and the Delta State Government with the remaining eight per cent.
