UTM Offshore, Seplat Energy, and NNPC sign gas supply deal for Nigeria’s first floating LNG project, advancing toward 2030 production target

UTM Offshore, Seplat Energy, and the Nigerian National Petroleum Company (NNPC) have signed a gas sales agreement for the UTM FLNG project — Nigeria’s first indigenous-led floating LNG development — situated in the deepwater Yoho field offshore Nigeria.

The deal marks one of the last major commercial milestones the project needs before reaching a final investment decision.

Three parties sign gas sales agreement for UTM FLNG project

The gas sales agreement (GSA) brings together UTM Offshore as the project operator, Seplat Energy as a private upstream partner, and NNPC as the national oil company—clearing one of the last major commercial hurdles before a final investment decision (FID) can be made.

JGC Holdings and Technip Energies are currently reviewing the EPCIC contract, signaling that world-class technical execution is built into the plan from the outset.

The African Energy Chamber (AEC) welcomed the signing, calling it a significant step toward unlocking Nigeria’s offshore gas resources through indigenous leadership. The Chamber framed the deal as proof that African companies can lead world-scale infrastructure projects, not just participate in them.

Engineering and pre-construction activities at the deepwater Yoho field are already complete. The team is now working toward a sale and purchase agreement and the FID itself.

Why the agreement was reached now: Nigeria’s Decade of Gas Initiative

Timing matters here. Nigeria is deep into its Decade of Gas Initiative, a government-backed push to transform the country into a gas-powered economy by 2030—one that targets reduced gas flaring and the monetization of Nigeria’s 200 trillion cubic feet of proven gas reserves.

UTM FLNG fits squarely into that strategy. The project is designed to raise Nigeria’s LNG export capacity while also serving domestic energy needs, a dual mandate that aligns with what the government has been pushing for. Completing the engineering and pre-construction work gave the project the technical credibility it needed to bring commercial partners to the table, and the GSA follows directly from that groundwork.

Expected output, domestic supply, and financing structure

Once operational, the FLNG facility is expected to produce 176 million ft³ per day, with first shipments targeted by 2030—ambitious, but backed by a defined timeline.

On the domestic side, the project will supply approximately 300,000 tons per year of LPG to Nigeria’s local market. That’s a meaningful contribution to household cooking fuel access, reducing reliance on imports and supporting cleaner energy use at the community level.

Financing is taking shape. Afreximbank has committed debt capital, while NNPC and the Delta State Government have made equity commitments — a combination that gives the project solid institutional footing at both national and regional levels. JGC Holdings and Technip Energies are currently reviewing the EPCIC contract, signaling that world-class technical execution is built into the plan from the outset.

Context: Nigeria’s role in African LNG supply and indigenous-led development

Nigeria holds 200 trillion cubic feet of proven gas reserves, making it one of Africa’s largest gas producers. Historically, though, much of that resource has been flared or left undeveloped. The UTM FLNG project is structured to change that pattern.

What sets this project apart is ownership. NNPC and the Delta State Government are among the equity holders, making it genuinely indigenous-led rather than a foreign-operated venture with local partners filling secondary roles. That distinction matters to the AEC, which has positioned UTM FLNG as a model for how African countries can commercialize their own resources on their own terms.

NJ Ayuk, Executive Chairman of the AEC, put it directly: the project is “a blueprint for how Africa can commercialize its gas resources through African leadership.” He also highlighted Seplat Energy’s participation as a sign of growing private-sector confidence in the initiative.

The broader goal spans reduced gas flaring, expanded export capacity, and stronger competitiveness as a global LNG supplier. If the project reaches FID and holds its schedule, it could demonstrate that large-scale, African-led LNG development is commercially viable — not merely aspirational.

Nigeria’s first indigenous-led FLNG project

Here’s where things stand. UTM Offshore, Seplat Energy, and NNPC have signed a gas sales agreement for Nigeria’s first indigenous-led FLNG project, located in the deepwater Yoho field. The GSA represents one of the final commercial milestones before a final investment decision.

The project targets 176 million ft³/d of gas production and a 2030 shipping date, with around 300,000 tpy of LPG earmarked for Nigeria’s domestic market. Debt financing comes from Afreximbank; equity commitments have been made by NNPC and the Delta State government. JGC Holdings and Technip Energies are reviewing the EPCIC contract.

Situated within Nigeria’s Decade of Gas Initiative, the project is designed to monetize the country’s 200 trillion cubic feet of proven reserves while cutting flaring. Finalizing the sale and purchase agreement and reaching FID are the remaining steps.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.