Nigeria’s $3 billion floating liquefied natural gas (FLNG) project reached a major milestone.
The developer, UTM Offshore, signed a long term agreement of 15-year gas supply with Seplat Energy and the Nigerian National Petroleum Company (NNPC).
This agreement cleared one of the final hurdles before the final investment decision (FID), which the company targets for the fourth quarter of this year.
The FLNG facility sits in the deepwater offshore Yoho field. When completed, it will produce 176 million cubic feet of gas per day.
Engineers already finished engineering and pre-construction work. The operator now works to sign the sale and purchase agreement.
The project received debt funding from Afreximbank. It also secured equity commitments from NNPC and the Delta State Government.
Global firms JGC Holdings and Technip Energies currently review the engineering, procurement, construction, installation and commissioning contract. The parties aim to start LNG shipments by 2030.
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The Executive Chairman of the African Energy Chamber NJ Ayuk, welcomed the development.
“We believe that the FLNG facility will strengthen Nigeria’s position as one of Africa’s leading LNG producers,” he said.
He added that the project offers a model for monetising offshore gas resources across the continent.
Technical consultancy firm Unnic LNG Solutions described the deal as more than a win for Nigeria.
The company said FLNG projects unlock new offshore reserves and reshape global energy trade as demand for cleaner energy grows.
In a related move, Baker Hughes signed a 13-year service agreement with Nigeria LNG for turbomachinery equipment at its Bonny Island plant.
