TotalEnergies and NNPC to Invest $550 Million in Nigerian Gas Facility
In a strategic move aimed at bolstering Nigeria’s gas exports and domestic supply, TotalEnergies (TTEF.PA) and Nigeria’s state oil firm NNPC Ltd have announced a $550 million investment in a new gas processing facility in Rivers state. This development was disclosed by an NNPC insider on Wednesday.
The planned investment encompasses the construction of a gas processing plant and an associated pipeline. The facility will be situated at the Ubeta onshore gas field, a joint venture between Total and NNPC, and is designed to feed the Nigeria Liquefied Natural Gas (NLNG) plant. The NLNG is a collaborative enterprise involving NNPC, Shell (SHEL.L), Total, and Italy’s Eni.
Once operational, the facility is expected to produce 350 million standard cubic feet of gas per day along with 10,000 barrels of associated liquids daily. This project marks a significant step for Nigeria, which, despite possessing over 200 trillion cubic feet of natural gas reserves—the largest in Africa—has struggled with gas flaring due to insufficient processing infrastructure and financial limitations.
Energy analysts interpret this substantial investment as an indicator of President Bola Tinubu’s success in attracting foreign investment to Nigeria’s energy sector. “The government will hope this offers confidence not only in the quality of the Nigerian resource base but also in the government’s pledge to improve ease of doing business,” remarked Clementine Wallop, Director for sub-Saharan Africa at Horizon Engage, a political risk consultancy.
Nigeria has faced challenges in increasing its gas exports to the European Union, which is seeking alternatives to Russian supplies disrupted by the Ukraine war. Domestically, the country also grapples with providing adequate gas for its power plants, which are critical to the national electricity grid.
TotalEnergies declined to comment on the matter, but an official announcement is expected later this week.
*Source: Reuters*
