The Pan Niger Delta Forum, PANDEF, has described President Bola Tinubu’s approval of a 15-year gas supply agreement for the proposed UTM Floating Liquefied Natural Gas project as a major development capable of transforming the economic fortunes of the Niger Delta. PANDEF conveyed its commendation in a letter to the President signed by its National […]

The Pan Niger Delta Forum, PANDEF, has described President Bola Tinubu’s approval of a 15-year gas supply agreement for the proposed UTM Floating Liquefied Natural Gas project as a major development capable of transforming the economic fortunes of the Niger Delta.

PANDEF conveyed its commendation in a letter to the President signed by its National Chairman, Dr Godknows Igali, after the Wet Gas Sale and Purchase Agreement was executed by the NNPC/Seplat Energy Joint Venture and UTM FLNG Limited.

The forum said the agreement represents an important breakthrough for the proposed project because it guarantees the gas feedstock needed to drive the facility and clears one of the major issues standing in the way of the project’s Final Investment Decision.

The multi-billion-dollar project is planned for an offshore location in Akwa Ibom State, with PANDEF projecting significant economic benefits for both the Niger Delta and Nigeria as a whole. The forum believes the development could help move the country further into an era of gas-based industrialisation.

According to PANDEF, the project is particularly significant because it is being driven by indigenous players in the energy sector, including UTM Offshore, Seplat Energy and the Nigerian National Petroleum Company Limited. The forum said this could strengthen local participation in Nigeria’s gas industry.

PANDEF also described the initiative as an encouragement to indigenous investors, pointing to Dr Julius Rone as an example of a younger entrepreneur from the Niger Delta leading a major investment project in the region.

The forum said the economic benefits would extend beyond the gas facility itself, particularly during the construction phase, which it expects to generate jobs and stimulate activities across other areas of the economy.

PANDEF further said increased domestic gas supply from the project could help address concerns around gas availability and prices, while potentially reducing the environmental impact of persistent gas flaring in the Niger Delta.

The organisation urged the Federal Government to continue backing the project so that it can be completed according to schedule and deliver the economic benefits being projected for the region.

It also promised to work with communities across the Niger Delta, especially in Akwa Ibom State, to create a peaceful and supportive environment for the construction, operation and long-term sustainability of the project.

PANDEF said the gas supply agreement would add significant momentum to efforts aimed at accelerating industrial development in the Niger Delta, expressing optimism that the project could improve living standards and create broader economic opportunities for the region.