Business

NNPC, TotalEnergies to invest $550 million in gas projects in Nigeria — Report

Nigeria’s state oil firm, NNPC Ltd, and French energy major, TotalEnergies, are set to invest $550 million to develop a gas processing facility in Rivers State.

This joint venture aims to boost both exports and domestic gas supplies.

An NNPC source, who spoke on condition of anonymity, disclosed this information on Wednesday.

The investment will encompass the construction of a gas processing plant and an extensive pipeline network.

The facility will be located on the Ubeta onshore gas field, which is jointly owned by TotalEnergies and NNPC.

This plant will supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant. NLNG is a consortium that includes NNPC, Shell, Total, and Italy’s Eni.

Once completed, the plant is expected to produce 350 million standard cubic feet of gas per day and 10,000 barrels per day of associated liquids.

This development is significant for Nigeria, which holds Africa’s largest natural gas reserves of more than 200 trillion cubic feet.

Despite these vast reserves, Nigeria has historically flared gas from its oil fields due to a lack of processing infrastructure and capital constraints.

TotalEnergies has declined to comment on the project at this stage, but an official announcement from NNPC is anticipated later this week.

Analysts view this investment as a positive indicator of President Bola Tinubu’s efforts to attract investment into Nigeria’s energy sector.

Clementine Wallop, director of sub-Saharan Africa at political risk consultancy Horizon Engage, stated, “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.”

ALSO READ THESE TOP STORIES FROM NIGERIAN TRIBUNE