The Pan-Niger Delta Forum (PANDEF) has lauded President Bola Ahmed Tinubu over the signing of a 15-year gas supply agreement for the proposed UTM Floating Liquefied Natural Gas (FLNG) project.
The agreement, which guarantees the supply of 200 million standard cubic feet of gas per day (mmscf/d) to the project, was signed during the NOG Energy Week in Abuja.
The Wet Gas Sale and Purchase Agreement was executed by the NNPC/Seplat Energy Joint Venture and UTM FLNG Limited.
The agreement is expected to provide the gas feedstock required for the project and remove one of the major outstanding issues ahead of its Final Investment Decision (FID).
PANDEF said the development could support increased indigenous participation in Nigeria’s gas industry, create employment and contribute to economic activity in the Niger Delta.
The forum also said the project could support efforts to reduce gas flaring and expand domestic utilisation of natural gas, including the production of liquefied petroleum gas (LPG).
Speaking on the development, Group Managing Director of UTM FLNG, Julius Rone, attributed the progress on the project to the support of the federal government and its focus on expanding Nigeria’s gas industry.
Rone said the agreement demonstrated the potential of indigenous companies to participate more actively in large-scale energy projects when supported by appropriate policies and institutional cooperation.
PANDEF, in its reaction, said sustained government support for indigenous operators would be important to increasing investment and economic opportunities in the Niger Delta.
The forum maintained that greater participation by companies from the region in the development of its natural resources could contribute to employment generation and long-term economic stability.
Officials of the Nigerian National Petroleum Company Limited (NNPC) also linked the agreement to the federal government’s efforts to expand domestic gas utilisation and attract investment into the sector.
