The Nigerian National Petroleum Company Limited, in partnership with Seplat Energy Producing Nigeria Unlimited, has executed a 15-year wet gas sale and purchase agreement to supply 200 MMscf/d to the UTM Floating LNG project, marking a significant milestone in Nigeria’s gas commercialization drive.
The agreement was executed in Abuja on Tuesday on the sidelines of the 25th NOG Energy Week by Engr. Bashir Bayo Ojulari, NNPC Ltd’s Group CEO, alongside Roger Brown, Seplat Energy CEO and Julius Rone, UTM FLNG Managing Director.
In addition, the parties executed a series of ancillary agreements, including MoUs and gas supply and network entry deals with Ajaokuta Steel Company Limited, Chevron Nigeria Limited, AGPC, and NNPC Exploration & Production Limited, further strengthening gas infrastructure and distribution frameworks.
Engr.Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, is his comment on the suite of agreements, said the deals reinforce the company’s commitment to the Federal Government’s gas-based industrialisation agenda.
According to him, “This is not just about signing agreements, it is about igniting the engine of Nigeria’s industrialisation.”
“Gas is the key—it is a source of revenue and profit, and the only product that can deliver that level of industrial impact on Nigeria more than any other hydrocarbon.
He also described the agreements as “a testament to our shared commitment to transparency, efficiency, and a standardised framework for nationwide gas utilisation,” which he said “will unlock new supply capacity for the domestic market and solidify gas as a catalyst for economic transformation,”
Ojulari further emphasizing that they signal “a new era of strategic partnerships that will drive local content, enhance energy security and accelerate Nigeria’s journey towards becoming a global industrial powerhouse.
Advisors Reports that the agreement is expected to play a critical role in securing financing and supporting a targeted Final Investment Decision (FID) by late 2026.
The deepwater Yoho-based floating LNG facility is projected to deliver approximately 176 million standard cubic feet per day (MMscf/d) at peak production.
Engineering and early-stage project development activities have already been completed, with the project now advancing towards final contracting and regulatory approvals.
Funding support has been secured through commitments from the African Export-Import Bank, Nigerian National Petroleum Company Limited and the Delta State Government.
Meanwhile, global engineering contractors JGC Holdings Corporation and Technip Energies are currently reviewing the EPCIC contract as the project moves closer to execution.
The development is targeting first LNG shipments by 2030 and is expected to supply about 300,000 tonnes of liquefied petroleum gas (LPG) annually to the domestic market.
