UTM Offshore secures 15-year gas supply agreement for $3B FLNG project in Nigeria

Type: Supply Agreement · Technology: Gas · Country: Nigeria · Value: $3B · Announced: 2026-07-08

UTM Offshore finalized a 15-year gas supply agreement with a joint venture between Nigeria's state-owned NNPC Ltd and independent Seplat Energy Producing Nigeria Unlimited to secure 200 million standard cubic feet (5.7 million cubic metres) of gas per day for its $3 billion floating liquefied natural gas (FLNG) project. The FLNG project, designed to produce 1.8 million tonnes of LNG per year from gas sourced from the Yoho field, had faced delays but now expects a final investment decision in Q4 2026 following this agreement. NNPC holds a 20% stake in the project, UTM Offshore 72%, and Delta state government 8%, with Nigeria's first licence for a floating LNG export facility granted in 2024. Front-end engineering and design was completed in 2023 by JGC and Technip Energies, positioning the project for construction and operations. The gas supply framework provides certainty for investors, lenders, and LNG buyers, enabling project financing and advancing monetization of Nigeria's stranded gas reserves.

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