Shell and Partners Finalise Gas Supply Plan to Dangote Plant

  • The gas supply plan aims to build an upstream facility to supply 100m standard cubic feet of gas daily to the Dangote Plant in Lagos.
  • The project will supply gas, enhancing the plant’s ability to deliver on its promise to Nigeria.

The Shell Petroleum Development Company of Nigeria Limited (SPDC) and its joint venture partners have taken the final investment decision (FID) to build an upstream facility to supply 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State. The joint venture partners include the Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company.

The Managing Director of SPDC, the operator of the joint venture, Osagie Okunbor, disclosed this in Port Harcourt. He described the FID as a significant step in supporting the Nigerian government’s ‘Decade of Gas’ ambition, which will be for an initial period of ten years. He said, “This investment decision 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 located in Sagbama Local Government Area of Bayelsa State. SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and, particularly, the domestic gas agenda.”

According to the MD, increasing the delivery of natural gas to the domestic market is critical to Nigeria’s accelerated industrialisation and economic development. The FID is a positive step towards constructing the required infrastructure for the project, which is expected to create jobs through direct and indirect employment. Dangote boasts Africa’s largest granulated urea fertiliser complex, producing around 65 per cent of Nigeria’s domestic fertiliser requirements. The project will supply gas, enhancing the plant’s ability to deliver on its promise to Nigeria.

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