UTM Offshore Secures Gas Deal for Indigenous FLNG Project

During the 2026 NOG Energy Week in Abuja, UTM Floating Liquefied Natural Gas (UTM FLNG) Limited signed a 15-year Wet Gas Sale and Purchase Agreement with a joint venture comprising the Nigerian National Petroleum Company (NNPC) and Seplat Energy. The deal secures the supply of approximately 176 to 200 million standard cubic feet of gas per day from the deepwater Yoho Field in OML 104, located offshore Akwa Ibom State.

This facility will be Nigeria's first indigenous-led floating LNG project, with an annual production capacity of 1.8 million tonnes. The project targets a Final Investment Decision by the fourth quarter of 2026, with a goal to begin shipping by 2030. To support domestic energy needs, the facility will supply roughly 300,000 tons of liquefied petroleum gas annually to the local market.

Financing for the development includes debt capital from Afreximbank and equity commitments from the NNPC and the Government of Delta State. JGC Holdings and Technip Energies are currently reviewing the engineering, procurement, construction, installation, and commissioning (EPCIC) contracts. The initiative aligns with the Nigerian government's Decade of Gas mandate to diversify exports beyond crude oil and reduce gas flaring.