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Nigeria’s $3bn floating liquefied natural gas (FLNG) project has secured a 15-year gas supply agreement, clearing one of the most critical milestones ahead of final investment decision which is targeted for Q4.
The UTM Offshore signed the agreement with oil and gas firm Seplat Energy and the Nigerian National Petroleum Company, according to the African Energy Chamber (AEC).
Located in the deepwater offshore Yoho field, 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.
The project has secured debt capital from Afreximbank as well as equity commitments from the NNPC and Delta State Government, the AEC added.
Global technology firms JGC Holdings and Technip Energies are currently reviewing the engineering, procurement, construction, installation and commissioning contract, supporting the project as it advances toward a 2030 shipping target.
Commenting on the deal, NJ Ayuk, Executive Chairman of the AEC, said, “We believe that the FLNG facility will strengthen Nigeria’s position as one of Africa’s leading LNG producers while providing a model for monetising offshore gas resources across the continent.”
Technical consultancy and engineering firm Unnic LNG Solutions said it “isn’t just a win for Nigeria” but another signal that global LNG investment is expanding beyond traditional exporting nations.
“As demand for cleaner and more secure energy grows, FLNG projects are unlocking new offshore gas reserves and reshaping the future of global energy trade,” it said, in a statement.
Energy technology company Baker Hughes recently entered into a 13-year service agreement with Nigeria LNG (NLNG) covering services for turbomachinery equipment at its liquefaction plant in Bonny Island.