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Nigeria's UTM Offshore signs 15-year gas supply deal to unlock country's first floating LNG plant

UTM Offshore signed a 15-year gas supply agreement with NNPC and Seplat in Abuja on July 8, securing 200 million standard cubic feet per day of feed gas for Nigeria's first floating LNG project; the deal is expected to unlock a final investment decision in Q4 2026 for the US$3 billion-plus project, which will produce 1.8 million tonnes of LNG per year

Energy· active Whose Money·The Long Game ·4 takes · ·rbtfl upd Jul 9, 2026
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The split

The same story, as told by newsrooms in different countries. Their words, attributed and linked.

Africa

Billionaires Africa

“Julius Rone's UTM FLNG signed a 15-year deal with NNPC and Seplat for feed gas, clearing a hurdle to Nigeria's first floating LNG.”

African business press; frames the deal through its principal promoter, Julius Rone's UTM FLNG, and characterises the gas supply agreement as clearing a critical hurdle to Nigeria's first floating LNG facilityread the original ↗

United States

Energy Intelligence

“Project operator UTM Offshore has signed a long-term upstream gas supply deal that will make financing the US$3 billion-plus Nigerian project much easier.”

specialist upstream oil and gas trade publication; confirms the deal makes financing the US$3 billion-plus project "much easier," framing the gas supply agreement as the key remaining bankability obstacleread the original ↗

West Africa

Ghana Upstream Petroleum Commission

“NNPC and Seplat supplying 5.7 million cubic metres of gas per day to the UTM FLNG project, which is set to produce 1.8 million tonnes of LNG per year.”

West African upstream petroleum regulator site; gives the most granular commercial terms, including the 5.7 million cubic metres per day gas volume from NNPC and Seplat, and the 1.8 million tonne LNG annual output targetread the original ↗

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Summary

UTM Offshore signed a 15-year gas supply agreement with the Nigerian National Petroleum Company (NNPC) and Seplat Energy in Abuja on July 8, securing the feed gas needed for Nigeria's first floating LNG project. Under the deal, NNPC and Seplat will supply 200 million standard cubic feet per day (5.7 million cubic metres per day) of gas to the UTM FLNG plant, which is designed to produce 1.8 million tonnes of LNG per year. The agreement is expected to pave the way for a final investment decision (FID) in Q4 2026 on the US$3 billion-plus project. Energy Intelligence described the deal as making financing for the project "much easier," identifying the upstream gas supply commitment as the principal remaining bankability obstacle. The project is promoted by Julius Rone's UTM Offshore.

The split

African business press (Billionaires Africa) frames the deal through the project promoter Julius Rone and the significance of clearing a financing hurdle. The specialist upstream trade publication Energy Intelligence focuses on the bankability implication, stating directly that the deal makes project financing "much easier." The West African upstream petroleum coverage (Ghana Upstream) provides the most granular commercial terms, with volumes in cubic metres and annual LNG output capacity, a level of technical specificity absent from the business and trade coverage.

By the numbers

  • 200 mmscf/d (5.7 million cubic metres/day), the gas supply volume under the deal
  • 1.8 million tonnes, the annual LNG output target for the UTM FLNG plant
  • US$3 billion-plus, the estimated project cost for Nigeria's first floating LNG facility
  • Q4 2026, the targeted quarter for the final investment decision
  • 15 years, the term of the gas supply agreement

Why it matters

Nigeria holds Africa's largest proven natural gas reserves but has historically monetised a small fraction of them through LNG. A floating LNG project of this scale would add a new export pathway without the land-based infrastructure investment required for conventional LNG terminals. The gas supply agreement is typically the last major commercial hurdle before an FID, meaning the Q4 2026 timeline is credible. The deal also signals that NNPC under the current Nigerian reform push is ready to commit volumes to new LNG offtake arrangements.

What to watch

  • Whether UTM Offshore formally reaches final investment decision by end of Q4 2026 on the announced timeline
  • Which international LNG buyers sign offtake agreements for the 1.8 million tonne annual output
  • How project financing is structured, given the US$3 billion-plus cost and Energy Intelligence's note that it is now "much easier"
  • Whether the deal accelerates other Nigerian gas monetisation projects awaiting feed gas commitments

The briefing, by email