UTM FLNG, NNPC, Seplat Sign 15-Year Gas Sale Deal for 200mmscf/d

Nigeria has moved a significant step closer to unlocking its vast natural gas potential with the signing of a 15-year Wet Gas Sale and Purchase Agreement (WGSPA).

The agreement, finalized between UTM FLNG Ltd and the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture, will supply 200 million standard cubic feet of gas per day to UTM FLNG's floating liquefied natural gas project. This deal provides the crucial long-term feed gas certainty needed to advance project financing, positioning it for a Final Investment Decision (FID) in the fourth quarter of 2026.

NNPC Ltd Group Chief Executive Officer, Mr. Mele Kyari, hailed the agreement as a milestone in President Bola Tinubu's mandate to deepen gas utilization and advance the 'Decade of Gas' initiative. "This agreement is more than a commercial transaction; it is a strategic commitment to harness Nigeria’s gas resources for economic growth, industrial development, energy security, and shared prosperity," Kyari stated. He emphasized that the project will not only increase domestic gas use but also create jobs, deepen local content, strengthen Nigeria's global LNG competitiveness, and contribute to lower carbon emissions.

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This agreement is more than a commercial transaction; it is a strategic commitment to harness Nigeria’s gas resources for economic growth, industrial development, energy security, and shared prosperity.

UTM Offshore Ltd Group Managing Director and Chief Executive Officer, Mr. Julius Rone, highlighted that the agreement establishes the commercial framework and provides the necessary certainty for investors, lenders, and LNG buyers. "It provides certainty for investors, confidence for lenders and assurance for LNG buyers through a reliable long-term gas supply," he said.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, viewed the deal as further proof of growing investor confidence in Nigeria's gas sector, attributing it to the federal government's reform efforts. He noted that policy stability, fiscal incentives, and regulatory reforms are making Nigeria increasingly attractive to investors, underscoring the growing role of indigenous companies and private sector investment in developing the nation's gas potential.

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It provides certainty for investors, confidence for lenders and assurance for LNG buyers through a reliable long-term gas supply.