In a significant development for the energy sector, Shell Plc has announced its final investment decision to construct a gas supply facility in Nigeria.Thank you for reading this post, don't forget to subscribe!
This facility aims to provide gas to a fertiliser plant owned by Aliko Dangote, Africa’s wealthiest individual.
The agreement involves Shell and its joint venture partners TotalEnergies, Eni, and NNPC Ltd. It entails the supply of 100 million standard cubic feet of gas per day from the Iseni field to the Dangote Fertiliser and Petrochemical plant for a duration of 10 years.
Valued at $2.5 billion, the plant stands as Africa’s largest urea complex, with an annual output of 3 million tonnes, catering to 65% of Nigeria’s fertiliser requirements and serving key markets in the sub-region.
Boosting Gas Supply to Stimulate Economic Growth
“The agreement is a critical step in pursuing the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Oil Mining Lease 35” in the oil-rich Bayelsa state, Shell’s Nigeria chief, Osagie Okunbor, said in an email.
Nigeria holds Africa’s largest gas reserves of more than 200 trillion cubic feet and is seeking to develop the reserves to boost supply to industries, power plants, and for exports. Okunbor said the project will increase the delivery of gas to the domestic market and help stimulate economic growth.