Nigerian tycoon Julius Rone’s UTM Offshore clears hurdle for $5 billion gas project

UTM Offshore, the Nigerian energy company led by Julius Rone, has secured a 15-year gas supply agreement, removing a major hurdle to its $5 billion floating liquefied natural gas (FLNG) project. The milestone paves the way for a final investment decision (FID), now expected in the fourth quarter of 2026 after earlier delays.

The agreement provides a long-term feed gas framework critical to unlocking financing, advancing construction, and securing LNG buyers for the offshore facility. Designed to produce 1.8 million tonnes of LNG annually, the project is positioned to strengthen Nigeria’s role in the global energy market amid rising demand for cleaner fuels.

Gas supply deal unlocks project momentum

The UTM Offshore Floating Liquefied Natural Gas (FLNG) project is a $5 billion total investment, consisting of $2 billion mobilised by Afreximbank for the first phase and an additional $3 billion earmarked for the second phase. However, recent project financing and gas supply agreements often highlight the initial $3 billion funding threshold required to reach its final investment decision (FID).

Under the agreement, a joint venture between NNPC Ltd and Seplat Energy Producing Nigeria Unlimited will supply 200 million standard cubic feet of gas per day from the Yoho field. The steady supply is expected to underpin operations at the planned offshore LNG facility and reduce project risk.

Julius Rone, chief executive of UTM Offshore, said the agreement establishes the certainty required by investors, lenders, and LNG buyers. He noted that securing long-term gas supply is a critical step toward achieving financial close and moving the project into execution.

Strategic push to monetize gas reserves

The FLNG project aligns with Nigeria’s broader strategy to unlock its vast natural gas resources, which remain underutilized despite being among the largest in Africa. Persistent challenges, including infrastructure gaps, regulatory constraints, and funding limitations, have slowed progress in converting gas reserves into export revenue and industrial growth.

The project received Nigeria’s first license for a floating LNG export facility in 2024, marking a key milestone in efforts to expand LNG production capacity and capture global demand.

Ownership structure and financing progress

UTM Offshore holds a 72% stake in the project, alongside NNPC with 20% and the Delta State Government with 8%. The company has also secured financial backing through a partnership with the African Export-Import Bank, which has committed funding to support phased development.

Front-end engineering and design (FEED) was completed in 2023 by JGC and Technip Energies, providing the technical foundation required for execution once financing is finalized.

As the project moves closer to FID, the gas supply agreement is expected to play a pivotal role in de-risking development, boosting investor confidence, and accelerating Nigeria’s ambitions to become a leading LNG exporter.