The Pan Niger Delta Forum, PANDEF, and the Group Managing Director of UTM Floating Liquefied Natural Gas, FLNG, Limited, Mr. Julius Rone, have commended President Bola Ahmed Tinubu over the execution of a landmark 15-year gas supply agreement for the UTM Floating Liquefied Natural Gas project, describing it as a major breakthrough for Nigeria’s gas industry and indigenous energy development.
The agreement, signed during the Nigerian Oil and Gas, NOG, Energy Week in Abuja, guarantees the supply of 200 million standard cubic feet of gas per day to the UTM FLNG facility under a Wet Gas Sale and Purchase Agreement executed by the NNPC/Seplat Energy Joint Venture and UTM FLNG Limited.
PANDEF, in its reaction, described the development as a defining milestone that demonstrates the Federal Government’s commitment to unlocking the vast economic potential of the Niger Delta through indigenous participation in the oil and gas industry.
According to the forum, the successful conclusion of the long-term gas supply agreement has removed the biggest obstacle to the project’s Final Investment Decision, FID, while positioning Nigeria to deepen domestic gas utilisation, reduce gas flaring, create thousands of jobs and earn more foreign exchange through LNG exports.
The forum further praised President Tinubu for providing the political leadership and enabling environment that made the agreement possible, noting that sustained support for indigenous investors remains critical to driving industrialisation and lasting economic prosperity in the Niger Delta.
Also speaking, the Group Managing Director of UTM FLNG Limited, Mr. Julius Rone, attributed the breakthrough to President Tinubu’s unwavering commitment to the implementation of Nigeria’s “Decade of Gas” initiative.
Rone said: “The successful execution of this 15-year gas supply agreement is a historic milestone not only for the UTM FLNG project but also for Nigeria’s energy sector. It reflects the confidence that government policies have inspired among investors and demonstrates what indigenous companies can achieve with the right support and political will.”
He added that securing a guaranteed long-term gas supply clears the final major hurdle to the project’s advancement and paves the way for accelerated implementation of Nigeria’s first indigenous floating liquefied natural gas facility.
He added that beyond its commercial significance, the project will expand domestic gas utilisation, improve access to cleaner cooking fuel, reduce carbon emissions, stimulate industrial growth and create significant employment opportunities for Nigerians.
Officials of the Nigerian National Petroleum Company Limited, NNPCL, also described the agreement as one that with the Federal Government’s economic reform agenda aimed at monetising the nation’s abundant gas resources, strengthening energy security and positioning Nigeria as a leading gas export hub.
Industry stakeholders believe the execution of the agreement marks a significant step towards the commencement of the UTM FLNG project, which is expected to transform Nigeria’s gas value chain while increasing local participation in the country’s energy sector.
