UTM Offshore has secured a 15-year gas supply agreement, clearing a major hurdle towards reaching a final investment decision (FID) on its $3 billion Floating Liquefied Natural Gas (FLNG) project, which is now expected in the fourth quarter of 2026 following earlier delays.
Under the agreement, a joint venture between NNPC Ltd and Seplat Energy Producing Nigeria Unlimited will supply 200 million standard cubic feet of gas per day (5.7 million cubic metres) to the UTM FLNG facility. The project is designed to produce 1.8 million tonnes of liquefied natural gas (LNG) annually using gas from the Yoho field.
Speaking at the signing ceremony in Abuja, Julius Rone, UTM Offshore Chief Executive Officer, said the agreement provides the long-term gas supply framework required to move the project into its financing, construction and operational phases.
“The execution of this agreement establishes the long-term feed gas framework needed to advance project financing, construction and operations,” Rone said.
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