Nigeria's UTM Signs 15-Year Gas Supply Agreement

en.Wedoany.com Reported - Nigeria's infrastructure company UTM Offshore has signed a 15-year Gas Supply Agreement (GSA) with the Nigerian National Petroleum Company (NNPC)-Seplat Energy joint venture, clearing a major commercial hurdle for Nigeria's first domestically-led FLNG project.

Under the terms of the agreement, the NNPC-Seplat joint venture will supply 200 million standard cubic feet of natural gas per day from the Yoho field in OML 104 offshore Akwa Ibom State to meet the feedstock requirements of the FLNG facility. The project is designed to produce 1.8 million tons of LNG annually, with approximately 300,000 tons of LPG planned to be supplied back to the Nigerian domestic market. The 15-year agreement meets a key condition set by lenders before committing to project financing.

The total investment for the project is approximately $5 billion, with UTM Offshore holding a 72% equity stake, NNPC holding 20%, and the Akwa Ibom State government holding the remaining 8%. The African Export-Import Bank has committed to providing debt capital, while NNPC and the Akwa Ibom State government will provide equity capital. Front-end engineering design was completed in 2023 by JGC and Technip Energies, with KBR serving as the owner's engineer. The project obtained a construction permit from the Nigerian Midstream and Downstream Petroleum Regulatory Authority in 2024.

UTM Offshore is simultaneously advancing the signing of sale and purchase agreements, targeting a final investment decision in the fourth quarter of 2026, with first LNG exports expected by 2030. Engineering and pre-construction activities have been completed, and EPCIC contracts are being evaluated by JGC and Technip Energies.