Shell Petroleum Development Company of Nigeria, in collaboration with joint-venture partners including Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigeria Agip Oil Company, has announced a groundbreaking agreement to construct a gas upstream facility in Lagos. The primary objective of this project is to provide a daily supply of 100 million standard cubic feet of gas over a 10-year period to the Dangote Fertilizer and Petrochemical plant in Lekki, Lagos State.
The final investment decision to proceed with the construction of this gas facility represents a significant milestone in the development of the gas-rich Iseni field, a crucial component of the Okpokunou Cluster located in Mining Lease 35 within the Sagbama Local Government Area of Bayelsa state.
Osagie Okunbor, Managing Director of SPDC, emphasized the importance of this investment decision, stating, “This investment decision is a critical step in pursuing the development of the gas-rich Iseni field… [and] a positive step towards the construction of the required infrastructure for the project that is expected to create jobs through direct and indirect employment.”
The Okpokunou Cluster, situated in the heart of Nigeria’s oil-rich Niger Delta, plays a pivotal role in the nation’s oil production. The Dangote Fertilizer and Petrochemical plant, a major consumer of the gas produced, stands as a testament to the strategic significance of this venture.
While specific details regarding the project’s cost and the timeline for construction commencement were not disclosed, the initiative reflects a strategic move to tap into Nigeria’s substantial natural gas reserves. As of the beginning of 2023, Nigeria boasts an estimated 206.5 trillion cubic feet of natural gas reserves, positioning the country as the seventh-largest global gas producer, according to the Nigerian National Petroleum Corporation (NNPC).
