Nigeria’s drive to expand its natural gas exports has received a major boost after UTM Floating Liquefied Natural Gas (UTM FLNG) Limited secured a 15-year gas supply agreement for its planned floating LNG project.
The agreement, signed during the 2026 NOG Energy Week in Abuja, provides for the supply of 200 million standard cubic feet of natural gas per day from the NNPC/Seplat Energy Producing Nigeria Unlimited Joint Venture. The long-term arrangement is expected to provide the commercial certainty needed to attract financing and move the project closer to construction.
Industry stakeholders described the deal as a key milestone because guaranteed gas supply is one of the major requirements investors and lenders consider before committing funds to large-scale LNG developments.
Speaking at the signing ceremony, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, said the agreement supports the Federal Government’s strategy of expanding gas utilisation and creating greater value from Nigeria’s abundant gas reserves.
He said the project would help drive industrial growth, generate employment, strengthen local participation in the gas industry and improve Nigeria’s position in the global LNG market. Ojulari added that the agreement also places the project on track to reach a Final Investment Decision in the fourth quarter of 2026.
The Group Managing Director and Chief Executive Officer of UTM Offshore Limited, Julius Rone, said securing long-term gas supply significantly improves the project’s commercial viability. According to him, the agreement provides confidence to financiers, assures future LNG buyers of stable supply and paves the way for the next phase of development.
Rone said the project demonstrates that indigenous companies can successfully develop large-scale energy infrastructure while meeting international standards. He also expressed optimism that ongoing reforms in Nigeria’s oil and gas sector would continue to attract investment.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, described the agreement as another sign of the growing role of Nigerian-owned companies in developing the country’s gas resources. He said government reforms aimed at improving the investment climate are helping unlock opportunities across the gas value chain.
The UTM FLNG project will process gas from Oil Mining Lease 104 at the offshore Yoho Field in Akwa Ibom State using a floating liquefaction vessel capable of producing 1.8 million tonnes of LNG annually. The offshore approach is expected to reduce infrastructure costs and accelerate the commercialisation of stranded gas resources.
The project has already completed its engineering design stages, obtained a Licence to Construct from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and received approval for its Nigerian Content Plan from the Nigerian Content Development and Monitoring Board.
Ownership of the project is shared between UTM Offshore Limited with a 72 per cent stake, NNPC Limited with 20 per cent, and the Delta State Government holding the remaining eight per cent.
With Nigeria holding more than 210 trillion cubic feet of proven natural gas reserves, the project is expected to support the country’s Decade of Gas initiative by expanding LNG export capacity, increasing foreign exchange earnings and strengthening energy security.
