UTM Offshore has signed a Gas Sales Agreement (GSA) with oil and gas company Seplat Energy and the Nigerian National Petroleum Company (NNPC), marking a vital step forward in the development of Nigeria’s first indigenous-led FLNG project. The agreement represents one of the final commercial building blocks ahead of a final investment decision, reinforcing confidence in a project that is expected to support Nigeria’s gas monetization strategy while expanding LNG exports and domestic gas utilization.
The African Energy Chamber (AEC) – representing the voice of the African energy sector –commends UTM Offshore, the NNPC and Seplat Energy for reaching this landmark agreement. The Chamber views the GSA as a significant step toward unlocking Nigeria’s vast offshore gas resources through indigenous leadership and strategic collaboration. As Africa seeks to maximize the value of its natural gas resources while strengthening energy security and industrial development, projects such as UTM FLNG demonstrate how African companies can lead world-scale infrastructure developments that generate investment, create jobs and position the continent as a more competitive LNG supplier.
Situated in the deepwater Yoho field offshore Nigeria, the FLNG project is expected to produce 176 million cubic feet per day once operational. Engineering and pre-construction activities have been completed, with the operator now pursuing the signing of the Sale and Purchase Agreement and FID following the GSA milestone. On a financing side, the project has secured debt capital from Afreximbank as well as equity commitments from the NNPC and Delta State Government. Global technology firms JGC Holdings and Technip Energies are currently reviewing the EPCIC contract, supporting the project as it advances toward a 2030 shipping target.
“The signing of this GSA demonstrates what is possible when indigenous companies, national institutions and private investors work together toward a shared vision. UTM FLNG is more than an LNG project; it is a blueprint for how Africa can commercialize its gas resources through African leadership, create long-term economic value and strengthen energy security while supplying cleaner energy to both domestic and international markets,” states NJ Ayuk, Executive Chairman of the AEC.
Advancements at the UTM FLNG project comes at a pivotal time for Nigeria’s natural gas sector as the country pursues new investments that align with its Decade of Gas Initiative. Focused on transforming the country into a gas-powered economy by 2030, the initiative aims to reduce gas flaring, improve energy access while monetizing the country’s 200 trillion cubic feet of proven gas reserves. Projects such as UTM FLNG represent a cornerstone of this strategy, raising Nigeria’s export capacity and strengthening its position in global energy markets.
Beyond exports, the project has also been structured to support Nigeria’s domestic energy ambitions. Approximately 300,000 tons per annum of LPG will be supplied to the local market, supporting cleaner household cooking fuels and reducing reliance on imports.
“It’s great to see companies like Seplat Energy come on board for this strategic project. We believe that the FLNG facility will strengthen Nigeria’s position as one of Africa’s leading LNG producers while providing a model for monetizing offshore gas resources across the continent. By combining indigenous ownership, strategic partnerships and world-class engineering, the project demonstrates how African-led developments can accelerate industrialization, reduce gas flaring and unlock greater value from the continent’s abundant natural gas resources,” Ayuk added.
