Nigeria’s ambition to become a leading global gas powerhouse received a major boost as the NNPC Ltd/Seplat Energy Producing Nigeria Unlimited (SEPNU) Joint Venture signed a landmark 15-year Wet Gas Sale and Purchase Agreement (WGSPA) with UTM FLNG Ltd. The agreement guarantees the supply of 200 million standard cubic feet of gas per day to the UTM Floating LNG project, providing the long-term feedgas security needed to advance financing efforts and position the project for a Final Investment Decision (FID) expected in the fourth quarter of 2026.
The deal, signed at the NNPC Towers in Abuja, is being hailed as a transformative development for Nigeria’s gas industry. Beyond securing gas supply, the agreement is expected to unlock stranded gas reserves, increase the country’s LNG export capacity, stimulate industrial growth, and support the Federal Government’s “Decade of Gas” initiative. Industry stakeholders believe the partnership could strengthen Nigeria’s position in the highly competitive global LNG market while driving economic diversification.
Speaking during the signing ceremony, NNPC Group Chief Executive Officer, Engr. Bayo Ojulari, described the agreement as a strategic milestone that goes beyond business interests. According to him, the project aligns with the Federal Government’s vision of increasing gas utilisation by 2030 and will create significant economic opportunities through job creation, local content development, energy security, and cleaner energy adoption. He stressed that natural gas remains a critical bridge fuel capable of supporting sustainable growth while reducing carbon emissions.
For UTM FLNG, the agreement provides the commercial certainty required to move the project into its next phase. The Group Managing Director and Chief Executive Officer of UTM Offshore Ltd, Mr. Julius Rone, noted that the long-term gas supply framework strengthens investor confidence, improves financing prospects, and assures future LNG buyers of reliable feedstock availability. The project, which began in 2021, has continued to record major milestones, including the completion of Front-End Engineering Design (FEED) and regulatory approvals necessary for construction and development.
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, described the agreement as a strong signal of growing investor confidence in Nigeria’s gas sector and the success of recent reforms. Once operational, the UTM FLNG facility, located offshore Akwa Ibom State and supplied from the Yoho Field (OML 104), is expected to produce 1.8 million tonnes of LNG annually. With NNPC Ltd holding a 20 percent stake, UTM Offshore Ltd 72 percent, and the Delta State Government 8 percent, the project is increasingly viewed as a flagship investment capable of transforming Nigeria’s gas landscape and unlocking billions of dollars in economic value.