UTM Offshore Secures 15-Year Gas Supply Deal for $3 Billion LNG Project
Nigeria’s UTM Offshore has secured a 15-year gas supply agreement with the joint venture operated by the Nigerian National Petroleum Company Limited (NNPC Ltd.) and Sterling Oil Exploration & Energy Production Company (SEEPCO), clearing a major hurdle for its proposed $3 billion Floating Liquefied Natural Gas (FLNG) project.The agreement provides long-term gas supply from the Yoho field offshore Akwa Ibom State and is expected to pave the way for a Final Investment Decision (FID) on the landmark energy project.The FLNG facility is designed to produce about 1.8 million metric tonnes of liquefied natural gas (LNG) annually, alongside 300,000 metric tonnes of liquefied petroleum gas (LPG) and approximately 500,000 metric tonnes of condensate. The project is expected to strengthen Nigeria’s position in the global LNG market while supporting the country’s gas monetisation strategy.
Speaking on the development, UTM Offshore described the gas supply agreement as a significant milestone that demonstrates the confidence of key industry stakeholders in the project’s viability. The company noted that securing a reliable gas source is one of the final requirements before construction can move into its next phase.The project is expected to attract billions of dollars in investment, create employment opportunities during both the construction and operational phases, and increase Nigeria’s foreign exchange earnings through LNG exports.
Industry analysts believe the FLNG project will also contribute to reducing gas flaring by commercialising stranded gas resources, while expanding access to cleaner energy and supporting Nigeria’s transition toward a gas-driven economy.
The development comes as the Federal Government continues to promote natural gas as a key driver of economic diversification, industrialisation and energy security. Stakeholders say successful implementation of the project could further enhance investor confidence in Nigeria’s oil and gas sector and strengthen the country’s competitiveness in the global energy market.
