The Pan-Niger Delta Forum (PANDEF) has commended President Bola Ahmed Tinubu following the signing of a 15-year gas supply agreement for the UTM Floating Liquefied Natural Gas (FLNG) project.
The forum described the agreement as a major milestone for Nigeria’s energy industry and a significant boost to indigenous participation in the oil and gas sector.
Under the agreement, UTM FLNG Limited will receive 200 million standard cubic feet of gas per day from the NNPC/Seplat Energy Joint Venture to serve as feedstock for the facility.
The Wet Gas Sale and Purchase Agreement was signed during NOG Energy Week in Abuja. The long-term deal is expected to remove a major obstacle to the project’s Final Investment Decision (FID).
The agreement secures the gas supply required for what is expected to become Nigeria’s first indigenous floating LNG facility.
PANDEF said the project could contribute significantly to the development of the Niger Delta by creating employment opportunities, encouraging industrialisation and increasing local participation in the energy sector.
The forum also noted that the project could help reduce gas flaring while improving access to cleaner cooking fuel, including Liquefied Petroleum Gas (LPG), for households across the country.
The Group Managing Director of UTM FLNG, Julius Rone, attributed the development to the Tinubu administration’s efforts under its “Decade of Gas” initiative.
Rone said the achievement demonstrated what indigenous energy companies could accomplish when supported by favourable government policies and strong political commitment.
PANDEF similarly praised the Federal Government for creating an environment capable of attracting major investments into infrastructure and the energy sector.
The group maintained that greater support for indigenous operators would contribute to sustainable economic development, employment generation and long-term stability in the Niger Delta.
Officials of the Nigerian National Petroleum Company Limited (NNPC) said the agreement was consistent with the Federal Government’s broader economic and energy reforms.
The UTM FLNG project is expected to create thousands of direct and indirect jobs, reduce carbon emissions and generate additional foreign exchange for Nigeria through future LNG exports.
With the 15-year gas supply agreement now secured, stakeholders are expected to intensify efforts toward the development and eventual commissioning of the facility.
The project is being viewed as an important step in Nigeria’s drive to maximise its abundant natural gas resources, expand domestic gas utilisation and strengthen indigenous participation in the energy industry.
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