The deal, signed in Abuja, will see NNPC and Seplat supplying 5.7 million cubic metres of gas per day to the UTM FLNG project, which is set to produce 1.8 million tonnes of LNG per year.
The gas supply agreement is the first of three milestones the company needs to achieve to deliver the project.
Julius D. Rone, group managing director and CEO of UTM Offshore said to The Energy Year, “We have completed the engineering designs and are in pre-construction. The project now has three key milestones to achieve: the GSA [gas supply agreement], the SPA [sales and purchase agreement] and the FID. We hope to sign the GSA in Q2 2026, and we have made good progress on the SPA negotiations, agreeing to heads of terms with our offtaker. Debt financing is in place with Afreximbank. The debt tranche is fully subscribed, but lenders are still asking to join the syndication. On the equity side, we have secured commitments from NNPCL, the Delta State Government and other investors.”
JGC and Technip completed front-end engineering in 2023. The project became Nigeria’s first FLNG to be licensed in 2024. UTM Offshore owns 72% and Delta State Government 8% and NNPC 20%.