The Presidency has announced the kickoff of a $550 million upstream gas project between Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies for the development of the Ubeta field.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this at the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department in Washington, DC.
Speaking at a luncheon during the dialogue, Verheijen mentioned that the upstream gas project would produce 350 million standard cubic feet of gas per day once operational.
A statement from Morenike Adewunmi, Stakeholder Manager, Office of the Special Adviser to the President on Energy, was shared with the News Agency of Nigeria (NAN) in Abuja on Tuesday.
Ms. Verheijen informed the gathering that President Bola Tinubu’s major energy reforms since June 2023 have been aimed at enhancing energy security, attracting investments, and strengthening collaboration with key partners, including the US government.
She highlighted that these reforms have significantly improved the viability of Nigeria’s gas-to-power value chain.
Executive orders on petroleum and gas development
She further explained that, in support of the reform efforts, the President issued five new executive orders designed to offer fiscal incentives for investment and reduce the cost and time required to finalize and implement contracts for developing and expanding gas infrastructure.
The presidential aide also noted that these directives aim to immediately unlock up to $2.5 billion in new oil and gas investments in the country.
She acknowledged the valuable support of financing and technical partners, including the US government, the World Bank, and the African Development Bank, in efforts to expand electricity access and reliability through both grid and off-grid solutions.
Backstory
In July, the Nigerian National Petroleum Corporation (NNPC) Limited, in partnership with French energy giant TotalEnergies, planned to invest a significant $550 million to develop gas facilities in oil-rich Rivers State.
- Additionally, NNPC recently signed an agreement with North American firm Golar LNG to establish an offshore Liquefied Natural Gas (LNG) project in the Niger Delta. The deal includes a Project Development Agreement (PDA) aimed at utilizing approximately 400-500 million standard cubic feet per day (mmscf/d) to produce LNG, LPG (cooking gas), and condensate within the country.
- NNPC spokesperson Olufemi Soneye stated that while the initial agreement between NNPC and Golar has been finalized, the final agreement is expected to be concluded before the fourth quarter of this year.
- Nigeria, home to Africa’s largest natural gas reserves, with over 200 trillion cubic feet, has long flared – or burned off – gas from its oil fields due to inadequate processing infrastructure and capital constraints.
SOURCE: NAIRAMETRICS
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