IN a significant development for Nigeria’s energy sector, Shell has announced its final investment decision to establish a cutting-edge gas supply facility, signalling a crucial step in the advancement of the gas-rich Iseni field. The facility, part of the Okpokunou Cluster in Oil Mining Lease 35 located in the oil-rich Bayelsa state, is expected to cater to the substantial energy demands of Aliko Dangote’s Fertiliser and Petrochemical plant.
The deal, valued at $2.5bn, outlines the supply of 100 million standard cubic feet of gas per day from the Iseni field to the Dangote Fertiliser and Petrochemical plant for an impressive tenure of 10 years. This landmark agreement involves key stakeholders, including Shell, TotalEnergies, Eni, and the state oil firm NNPC.
Africa’s largest urea complex, with an annual output capacity of 3 million tonnes, is set to address a significant portion of Nigeria’s fertiliser needs, accounting for 65 percent of the nation’s demand. This strategic move positions the country to serve major markets in the sub-region, emphasising its commitment to becoming a regional energy hub.
Osagie Okunbor, Shell’s Nigeria Chief, highlighted the importance of this agreement in unlocking the potential of the Iseni field. ‘The agreement is a critical step in pursuing the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Oil Mining Lease 35,’ Okunbor stated in an email.
Nigeria, home to Africa’s largest gas reserves exceeding 200 trillion cubic feet, has set ambitious goals for developing these reserves. The nation aims to boost gas supply to industries, power plants, and facilitate exports. Okunbor emphasised that this project will significantly increase gas delivery to the domestic market, playing a pivotal role in stimulating economic growth in the region.
As Nigeria positions itself as a major player in the global energy landscape, Shell’s substantial investment underscores the country’s commitment to harnessing its vast gas resources for both domestic consumption and international trade.