UTM Offshore Targets September Decision on $3 Billion FLNG Project

UTM Offshore is targeting a final investment decision in September for its $3 billion floating liquefied natural gas (FLNG) project, which would pave the way for construction. The facility will process gas from the Yoho field offshore Nigeria and produce approximately 1.8 million tonnes of LNG annually, as well as LPG for the domestic market.

The company has recently secured a 15-year gas supply agreement with the NNPC-Seplat joint venture, which will provide about 200 million standard cubic feet of gas daily to the project. This arrangement will meet the feedstock requirements for the facility while UTM continues work on other commercial agreements ahead of the investment decision.

UTM Offshore holds a 72 percent interest in UTM FLNG Limited, while NNPC Limited owns 20 percent and the Delta State Government holds eight percent. The project aims to strengthen Nigeria's gas monetization efforts by converting offshore gas resources into LNG for export and providing LPG for the local market.