Nigerian gas tycoon Julius Rone nears FID on $5 billion FLNG project with Vitol as key buyer

Nigeria’s Julius Rone has given his most detailed signal yet that his flagship $5 billion floating LNG project is edging close to a final investment decision, buoyed by firming commercial partnerships.

The UTM Offshore chief executive confirmed that Vitol—the global commodity trader—has agreed to act as an off-taker for LNG exports, while Seplat Energy, one of Nigeria’s largest independent upstream producers, is in late-stage negotiations to supply feed gas to the floating plant.

“We’re very close to closing with Seplat and concluding the Sale and Purchase Agreement with Vitol,” Rone said on the sidelines of the recently concluded Africa Energy Week 2025 in Cape Town, adding that the plant will supply LPG to Nigeria’s domestic market while exporting LNG to Europe and Asia.

Bringing partners to the table

For UTM, having Vitol lined up for offtake deals is a vital step in de-risking the project ahead of a final investment decision (FID).

The tie-up with Seplat highlights a broader change in Nigeria’s gas sector: home-grown producers are taking centre stage as partners in unlocking stranded reserves, edging out the dominance once held by the big international oil majors.

Rone’s plan is to deploy a floating LNG (FLNG) facility—a vessel-based production, liquefaction and storage system—rather than building a costly onshore plant. The facility will tap gas from the Yoho field and is designed for a capacity of about 2.8 million tonnes per annum of LNG, alongside a domestic LPG stream.

Betting on floating infrastructure to cut delays

The attraction of FLNG lies in bypassing some of the infrastructure bottlenecks that have slowed Nigeria’s energy projects for decades. By liquefying gas at sea, UTM hopes to cut both costs and timelines while providing a new route to monetise offshore reserves.

The project structure reflects a push for local participation: UTM FLNG, the special-purpose vehicle, will lead the project with support from the Nigerian National Petroleum Company (NNPC) and an 8 per cent stake by the Delta State Government.

Rone argues that by capturing gas that would otherwise be flared, the project can support Nigeria’s emissions goals while also boosting hard-currency earnings from exports.

Financing hurdles amid global market uncertainty

Even with Vitol and Seplat in the frame, the journey to FID is not guaranteed. Financing a $5 billion venture requires a blend of equity, debt and possibly concessional capital from multilaterals such as Afreximbank, which UTM has been courting.

Global LNG markets remain volatile. While Europe’s energy demand remains strong and Asian buyers are scouting for long-term supplies, new supply from Qatar and the US could put downward pressure on prices later in the decade. Lenders will be closely scrutinising assumptions on future margins before releasing funds.

Still, African LNG developers see a strategic opening. With geopolitical risk and regulatory hurdles slowing new projects elsewhere, countries such as Nigeria believe they can lock in market share if they move fast.

A pivotal moment for Nigeria’s gas strategy

If Rone succeeds in reaching FID and executing the project on time, Nigeria would claim a first in deploying FLNG technology at scale, diversify its export portfolio, and reduce its chronic gas-flaring problem.

The project could also have a catalytic effect on Africa’s wider LNG ambitions. Neighbouring producers in Mozambique, Mauritania and Ghana are monitoring the model closely.

For Julius Rone, who has spent years lobbying for indigenous participation in big-ticket energy projects, the stakes are as personal as they are national. A successful launch would cement his reputation as a pioneer of African floating LNG. A failure to close finance or meet schedules would be a cautionary tale for an industry still trying to shake off delays and cost overruns.

As global demand for gas shifts and Africa’s resource-holders vie for capital, the coming months will determine whether Rone’s vision for floating LNG sails ahead—or stalls before it leaves port.