Seplat, NNPC Sign 15-Year Gas Supply Deal with UTM Offshore to Boost LNG Production

The NNPC/Seplat Energy Nigeria Producing Unlimited (SEPNU) Joint Venture has taken a major step towards accelerating Nigeria’s gas development agenda after signing a 15-year Wet Gas Sale and Purchase Agreement (WGSPA) with UTM Offshore Limited to supply natural gas to the UTM Floating Liquefied Natural Gas (FLNG) Project.
The landmark agreement, signed during the 2026 Nigerian Oil and Gas (NOG) Energy Week, provides for the supply of 200 million standard cubic feet per day (200MMscfd) of wet gas from the Yoho offshore field, marking another milestone in Nigeria’s drive to monetise its abundant gas resources.
Industry stakeholders believe the long-term agreement will strengthen the country’s gas value chain by ensuring reliable feedstock for the floating LNG facility while supporting domestic industrial development, energy security and increased exports.
The wet gas will be processed by the UTM FLNG Project into Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG) and condensates for both domestic consumption and international markets, creating additional value from Nigeria’s vast offshore gas reserves.
Speaking on the development, Seplat Energy said the agreement demonstrates the Joint Venture’s commitment to delivering sustainable energy solutions while creating long-term value for stakeholders and supporting Nigeria’s transition to cleaner energy.
According to the company, the partnership aligns with the Federal Government’s Decade of Gas initiative aimed at expanding gas infrastructure, reducing gas flaring, promoting cleaner fuels and driving industrialisation through increased gas utilisation.
Energy analysts say the agreement comes at a critical period when Nigeria is seeking to maximise earnings from natural gas as global demand for cleaner transition fuels continues to rise.
Reacting to the development, Celestine Ukpong, an economist, told The Ameh News that the long-term supply agreement sends a strong signal to investors about Nigeria’s commitment to commercialising its gas resources.
“Gas is increasingly becoming Nigeria’s most strategic transition fuel. Agreements of this nature encourage investment, generate foreign exchange earnings, create jobs and improve energy security. They also position Nigeria to benefit from growing global demand for LNG as countries seek cleaner alternatives to coal and oil,” he said.
Also commenting, Dr. Ejike Nduilo, Chief Thinker at Henryjvaleens Limited, a public relations, marketing, communications and corporate consulting firm, described the transaction as a significant confidence booster for Nigeria’s energy sector.
According to him, collaboration between indigenous operators and strategic investors demonstrates the growing maturity of Nigeria’s petroleum industry.
“This agreement is more than a commercial transaction. It reflects increasing confidence in Nigeria’s gas sector and highlights the importance of partnerships in unlocking stranded gas resources. Successful implementation will strengthen Nigeria’s position in the global LNG market while supporting domestic industrial growth,” Nduilo noted.
On the financial implications, Peter Adebayo, FCA, said long-term gas supply contracts provide revenue certainty for producers and reduce investment risks associated with large infrastructure projects such as floating LNG facilities.
He explained that predictable gas supply agreements enhance project bankability, attract financing and contribute to long-term value creation for investors and government alike.
Industry observers note that Nigeria possesses one of Africa’s largest proven natural gas reserves, estimated at over 200 trillion cubic feet, yet significant volumes remain underutilised. The development of floating LNG projects is expected to unlock offshore stranded gas resources faster than conventional onshore LNG facilities while increasing export capacity and expanding domestic gas availability.
The 15-year agreement therefore represents another important milestone in Nigeria’s ambition to transform natural gas into a key driver of economic diversification, industrialisation, cleaner energy and sustainable national development.
Seplat Energy and the NNPC/SEPNU Joint Venture have signed a 15-year agreement to supply 200MMscfd of wet gas to UTM Offshore’s Floating LNG project, boosting Nigeria’s gas monetisation, energy security and economic growth.