- Wednesday, October 16, 2024
IBADAN, Nigeria - Royal Dutch Shell PLC's Nigerian unit has announced plans to construct a gas upstream facility in Lagos in partnership with other joint-venture companies.
The Shell Petroleum Development Company of Nigeria (SPDC) revealed on Sunday that it has made a final decision to invest in the construction of a facility that will supply 100 million standard cubic feet of gas per day to the Dangote Fertilizer and Petrochemical plant in Lekki, Lagos State, for a period of 10 years.
Key Partnership
The project will see the involvement of several partners, including the Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigeria Agip Oil Company.
According to Osagie Okunbor, the Managing Director of SPDC, this investment decision marks an important milestone in the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Mining Lease 35 located in the Sagbama Local Government Area of Bayelsa state.
Economic Impact
In addition to its significance for gas exploration, Okunbor added that this investment decision also signifies progress in establishing the necessary infrastructure needed for the project. It is expected that job opportunities will be created through both direct and indirect employment.
Dangote Fertilizer & Petrochemical Plant
The Dangote Fertilizer and Petrochemical plant is Africa's largest granulated urea fertilizer complex, boasting an annual production capacity of 3 million metric tons. It also plays a crucial role in meeting Nigeria's domestic fertilizer demands, accounting for approximately 65% of the country's requirements.
Future Plans
Although Shell did not disclose specific details about the cost of the Dangote gas project or the timeline for construction commencement, this development reinforces Nigeria's position as the seventh-largest gas producer worldwide.
According to the Nigerian National Petroleum Corporation (NNPC), Nigeria currently possesses an estimated 206.5 trillion cubic feet of proved natural-gas reserves as of the beginning of 2023.
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