UTM Offshore has signed a gas sales agreement (GSA) with Seplat Energy and the Nigerian National Petroleum Company (NNPC), marking a key development in plans for Nigeria’s first indigenous-led floating liquefied natural gas (FLNG) project.
The agreement relates to gas from the deepwater Yoho field offshore Nigeria and moves UTM Offshore’s project closer to a final investment decision (FID), according to a press release on African Energy Chamber (AEC).
The FLNG facility is designed to process 176 million cubic feet per day (mcf/d) once operational. Engineering and pre-construction work on the project is already complete.
With the GSA now established, UTM Offshore is progressing towards a sale and purchase agreement and working to achieve an FID. The targeted start date for shipping liquefied natural gas (LNG) from the Yoho FLNG project is 2030, according to current plans.
Financing arrangements are in place for the development, including debt capital from Afreximbank and equity commitments from NNPC and the Delta State Government.
JGC Holdings and Technip Energies are assessing the engineering, procurement, construction, installation and commissioning contract, with their involvement supporting the project’s movement towards execution.
AEC executive chairman NJ Ayuk said: “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 commercialise 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.”
The Yoho project forms part of Nigeria’s Decade of Gas Initiative, which aims to transition the country to a gas-driven economy by 2030.
The programme seeks to reduce gas flaring, increase energy access and monetise Nigeria’s 200 trillion cubic feet of proven gas reserves.
In addition to exports, the Yoho FLNG project is structured to supply around 300,000t of liquefied petroleum gas per year to the Nigerian domestic market, supporting local energy needs and reducing import dependence.
In September 2024, UTM Offshore received a licence to construct what it asserts will be the country’s first FLNG plant.
