Nigeria's UTM FLNG secures 15-year gas supply deal

Nigeria's push to become a major global liquefied natural gas exporter received a significant boost Tuesday with UTM Floating Liquefied Natural Gas Limited securing a 15-year gas supply agreement. The deal is expected to unlock financing for the country's first indigenous floating LNG project.

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Today’s signing is not just an agreement; it is a declaration of intent to power Nigeria’s growth, prosperity and energy future through gas.

The landmark Wet Gas Sale and Purchase Agreement, signed during the 2026 NOG Energy Week in Abuja, commits the NNPC/Seplat Energy Producing Nigeria Unlimited Joint Venture to supply 200 million standard cubic feet of gas per day to the UTM FLNG project. This agreement is considered one of the project's most important commercial milestones, as it guarantees the critical feed gas supply required by lenders and investors before they commit billions of dollars.

Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, hailed the agreement as a major breakthrough in Nigeria's efforts to commercialize its vast gas resources and increase domestic gas utilization. He stated that the deal demonstrates the Federal Government's commitment to President Bola Tinubu's vision of expanding gas utilization under the "Decade of Gas" initiative, aiming to accelerate industrialization and economic growth.

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This transaction demonstrates our collective commitment to the Presidential mandate for increased gas utilization by 2030.

"This transaction demonstrates our collective commitment to the Presidential mandate for increased gas utilization by 2030," Ojulari said. "Beyond supplying feed gas to the UTM FLNG project, this agreement aligns with Nigeria’s broader industrialisation agenda and energy transition objectives. It will create employment opportunities, deepen local content participation, strengthen Nigeria’s competitiveness in the global LNG market and contribute to reducing carbon emissions through the monetisation of gas that might otherwise remain stranded."

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It will create employment opportunities, deepen local content participation, strengthen Nigeria’s competitiveness in the global LNG market and contribute to reducing carbon emissions through the monetisation of gas that might otherwise remain stranded.

Julius Rone, Group Managing Director and Chief Executive Officer of UTM Offshore Limited, described the signing as a defining moment for Nigeria's first indigenous floating LNG project. The agreement provides a clear path to achieving the Final Investment Decision on the UTM Floating LNG Project within the fourth quarter of 2026, a major milestone for both the project and Nigeria's gas industry. This project represents a significant step in transforming Nigeria into a leading global supplier of value-added natural gas products, moving beyond its traditional role as a crude oil exporter.

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Perhaps most importantly, this agreement provides a clear line of sight to achieving the Final Investment Decision on the UTM Floating LNG Project within the fourth quarter of 2026. That is a major milestone not only for the project but for Nigeria’s entire gas industry.