Nigeria’s push toward a gas-driven economy reached a significant milestone.
At NOG Energy Week in Abuja, the NNPC Ltd/Seplat Energy Joint Venture signed a 15-year Wet Gas Sale and Purchase Agreement with UTM FLNG Limited, a deal that supports Nigeria’s first indigenous Floating Liquefied Natural Gas project.
The agreement secures a steady supply of 200 million standard cubic feet of gas per day for the project and helps de-risk the estimated $3 billion investment. With that commercial backing in place, the Final Investment Decision is now expected in the fourth quarter of 2026.
A new model for gas development
The project is built around the Yoho Field in OML 104 offshore Akwa Ibom State. Instead of relying on a traditional onshore LNG plant, the facility will use floating liquefaction technology to process gas offshore, closer to the source.
That model brings several advantages. It reduces the need for extensive land-based infrastructure, improves efficiency, and offers a practical route for monetizing offshore gas resources that might otherwise remain stranded.
The project blueprint includes:
- 1.8 million tonnes of LNG per annum in processing capacity.
- Formal Licence to Construct approval from the NMDPRA.
- Nigerian Content Plan approval from the NCDMB.
Shared ownership, shared stakes
The equity structure reflects a mix of private and public participation in Nigeria’s evolving gas economy.
- UTM Offshore Limited holds 72% as the project promoter and majority shareholder.
- NNPC Limited holds 20%.
- The Delta State Government holds 8%.
This structure signals growing confidence in indigenous operators, while also showing how federal and sub-national participation can help unlock large-scale energy investments.
Local impact matters.
Beyond export potential, the project is expected to channel about 300,000 tonnes of Liquefied Petroleum Gas into the domestic market each year. That could improve access to cleaner cooking fuel for households while reducing gas flaring and lowering emissions. Source ThisDay Live
As Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, noted, the milestone shows that indigenous companies are ready to take on strategic leadership roles and that Nigeria’s regulatory reforms are beginning to create a more stable investment climate.
In business terms, this is more than a project update. It is a signal that Nigeria’s gas future is moving from policy ambition to commercial execution.
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