NNPC Ltd/Seplat Energy JV Signs Landmark 15-Year Gas Supply Deal with UTM FLNG, Paving Way for FID

…As Partners Restate Commitment to Unlock Nigeria’s Stranded Gas Reserves

Nigeria has taken a major step towards commercialising its vast natural gas resources following the signing of a 15-year Wet Gas Sale and Purchase Agreement (WGSPA) between the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture and UTM FLNG Ltd.

Under the agreement, the Joint Venture will supply 200 million standard cubic feet of gas per day (mmscf/d) to the UTM Floating LNG (FLNG) project, providing the long-term feedgas certainty required to support financing and position the project for a Final Investment Decision (FID) in the fourth quarter of 2026. 

The agreement, signed at the NNPC Towers in Abuja on Tuesday, marks a significant milestone for Nigeria’s gas sector and reinforces the country’s ambition to unlock stranded gas reserves, expand LNG exports, deepen industrialisation, and accelerate implementation of the Federal Government’s “Decade of Gas” initiative.

The agreement was signed by the Group Chief Executive Officer of NNPC Ltd, Engr. Bayo Ojulari, and the Group Managing Director/Chief Executive Officer of UTM Offshore Ltd, Mr. Julius Rone, on behalf of their respective organisations.

Speaking at the ceremony, Engr. Ojulari described the agreement as a major step towards achieving the Presidential mandate for increased gas utilisation by 2030 and advancing Nigeria’s gas-led economic transformation.

“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,” he said.

He noted that the project is expected to create jobs, deepen local content, strengthen Nigeria’s competitiveness in global LNG markets, and contribute to lower carbon emissions by expanding the use of cleaner-burning natural gas.

In his address, Mr. Julius Rone said the agreement provides the commercial foundation required to move the UTM FLNG project into its next phase.

“The execution of this agreement establishes the long-term feedgas framework needed to advance project financing, construction, and operations. It provides certainty for investors, confidence for lenders, and assurance for LNG buyers through a reliable long-term gas supply,” he said.

Also speaking at the event, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the agreement as evidence of growing investor confidence in Nigeria’s gas sector and the success of ongoing reforms.

According to the Minister, the partnership reflects the increasing role of indigenous companies and private-sector investment in unlocking Nigeria’s gas potential. “It also demonstrates the confidence investors continue to place in Nigeria’s gas market, supported by ongoing reforms, policy stability, and fiscal incentives championed by the Federal Government,” he said.

The UTM FLNG project, which commenced in 2021, received a Licence to Establish from the former Department of Petroleum Resources (now the Nigerian Midstream and Downstream Petroleum Regulatory Authority) and was granted a Licence to Construct in 2024.

The project will source feedgas from OML 104 (Yoho Field), offshore Akwa Ibom State, where it will be processed aboard a floating LNG facility with a production capacity of 1.8 million tonnes per annum (MTPA).

Project development has continued to advance, with Pre-FEED completed in 2021, FEED completed in October 2023 by JGC and Technip Energies, KBR appointed as Owner’s Engineer, and the Nigerian Content Development and Monitoring Board approving the Nigerian Content Plan for the EPC phase in 2024.

UTM FLNG has committed to delivering the project in line with international best practices in safety, environmental management, sustainability, and corporate governance through world-class engineering and project delivery standards.

The shareholding structure of UTM FLNG Ltd comprises NNPC Ltd (20%), UTM Offshore Ltd (72%), and the Delta State Government (8%).

See more pics from today’s signing ceremony below