SEATTLE (Oil Monster): Nigeria's planned floating liquefied natural gas (FLNG) project has reached a major milestone by securing a 15-year natural gas supply agreement. A final investment decision on the project is expected later this year. The project requires an investment of around $3 billion.
The agreement was signed by UTM Offshore, Seplat Energy, and the Nigerian National Petroleum Company (NNPC). The long-term arrangement ensures a reliable gas supply for the offshore project.
The FLNG facility, to be developed at the deepwater Yoho field, is expected to process approximately 176 million cubic feet of natural gas per day upon commencement of commercial operations. It has already concluded engineering studies and early construction planning. According to sources, work is now in progress to finalize gas sales agreements with future buyers.
The project is being funded by financial backing from Afreximbank, along with equity participation from NNPC and the Delta State Government. Also, the engineering, procurement, construction, installation, and commissioning contract for the facility is being evaluated by JGC Holdings and Technip Energies.
The project is expected to strengthen Nigeria's position in the global LNG market. The LNG shipments are likely to start by 2030.
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