State-run Nigerian National Petroleum Corp (NNPC) announced on Tuesday that its joint venture with Seplat took a “major” step towards commercializing Nigeria’s vast natural gas resources by signing a 15-year wet gas sale and purchase agreement (WGSPA) with UTM FLNG.
Under the agreement, the JV will supply 200 million standard cubic feet of gas per day (MMscf/d) to UTM’s FLNG project, “providing the long-term feedgas certainty required to support financing and position the project for a final investment decision (FID) in the fourth quarter of 2026,” NNPC said.
NNPC did not provide further details.
UTM previously delayed FID on what it says is Nigeria’s FLNG project several times.
The FLNG will process associated gas from the Yoho field currently flared in order to cut carbon emissions and monetize additional reserves for the domestic and global market.
Yoho field lies in Oil Mining Lease (OML) 104, offshore Nigeria.
The project is expected to produce 176 million cubic feet of gas per day from the Yoho field, according to UTM.
Financing and contracts
In 2021, UTM joined forces with the African Export-Import Bank (Afreximbank) to secure up to $5 billion to develop the floating LNG production unit, including about $2 billion for the project’s first phase.
The company awarded the FEED contract to France’s Technip Energies and Japan’s JGC.
UTM’s CEO Julius Rone confirmed to LNG Prime in 2024 that Cosco Shipping (Qidong) Offshore had been selected to work on its planned FLNG project.
Following the EPCIC contract award, Technip Energies and JGC subcontracted the shipbuilder in China to build the hull and integrate topsides.
In 2023, French LNG containment firm GTT signed a technical assistance and license agreement with the unit of Cosco Shipping.
This agreement enables the yard to construct GTT’s technologies for offshore LNG units, such as FLNGs or FSRUs, as well as for LNG carriers.
