- NNPC and TotalEnergies invest $550 million in Nigerian gas facility.
- Facility to supply NLNG plant and generate 350 million cubic feet of gas daily.
- Nigeria aims to boost gas exports and domestic supplies.
- Investment a success for President Tinubu's energy sector development bid.
Nigeria’s state oil firm NNPC Ltd and TotalEnergies are set to invest $550 million in a gas processing facility in southern Rivers state. The investment will include a gas processing plant and a pipeline, according to an NNPC source privy to the agreement.
The facility will be built on the Ubeta onshore gas field, jointly owned by Total and NNPC, and will supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant. NLNG is a consortium between NNPC, Shell, Total, and Italy’s Eni.
The plant will generate 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids when completed. Nigeria, with Africa’s largest natural gas reserves of over 200 trillion cubic feet, has struggled with gas flaring due to lack of processing infrastructure and capital constraints.
The investment is seen as a success for President Bola Tinubu’s bid to attract investment into Nigeria’s energy sector. Analysts believe this investment will boost confidence in Nigeria’s resource base and the government’s pledge to improve ease of doing business.
Nigeria has failed to increase its exports to the European Union despite the bloc’s search for alternative supplies to replace Russian imports. The country is also struggling to feed its gas power plants, which generate most of its grid electricity, highlighting the need for increased domestic gas production and processing.
