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NNPC And TotalEnergies To Invest $550m In Nigerian Gas Facility

NIGERIA’S state oil firm, NNPC Ltd, and TotalEnergies are set to invest $550 million in developing a gas processing facility in Rivers State to enhance exports and domestic supplies. An NNPC source, speaking anonymously due to lack of authorisation, confirmed the investment on Wednesday.

The investment will include constructing a gas processing plant and a pipeline on the Ubeta onshore gas field, which is jointly owned by TotalEnergies and NNPC. The gas processed at this facility will supply the Nigeria Liquefied Natural Gas (NLNG) plant, a consortium between NNPC, Shell, Total, and Italy’s Eni.

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Upon completion, the plant is expected to generate 350 million standard cubic feet per day of gas and produce 10,000 barrels per day of associated liquids. TotalEnergies declined to comment on the project, but an official announcement is anticipated this week.

Nigeria holds Africa’s largest natural gas reserves, exceeding 200 trillion cubic feet. However, the country has struggled with gas flaring due to inadequate processing infrastructure and capital constraints. This new investment is seen as a significant step toward addressing these issues.

Analysts suggest that this development aligns with President Bola Tinubu’s efforts to attract investment into 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,’ Clementine Wallop, director of sub-Saharan Africa at political risk consultancy Horizon Engage, told Reuters.

Despite holding vast natural gas reserves, Nigeria has faced challenges in increasing its exports to the European Union, which is seeking alternative supplies following the Ukraine war. Domestically, Nigeria struggles to supply its gas power plants, which are crucial for generating grid electricity.

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