Shell Commits to Developing Nigeria Gas Field to Supply Dangote Fertilizer Plant
(Reuters) — Shell Plc has made a final investment decision to build a gas supply facility in Nigeria to feed a fertilizer plant owned by Africa's richest man Aliko Dangote, the company said in a statement.
The new facility will supply 100 million standard cubic feet of gas per day from the Iseni field to the Dangote Fertilizer and Petrochemical plant for 10 years, according to the deal agreed by Shell and its joint venture partners TotalEnergies, Eni and the state oil firm NNPC Ltd.
The $2.5 billion plant, Africa's largest urea complex with a 3-million-tonne output per year, accounts for 65% of Nigeria's fertilizer needs and can supply all the major markets in the sub-region.
"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 in the oil-rich Bayelsa state,” Shell's Nigeria chief, Osagie Okunbor, said in an email.
Nigeria holds Africa's largest gas reserves of more than 200 trillion cubic feet and is seeking to develop the reserves to boost supply to industries, power plants, and for exports.
Okunbor said the project will increase the delivery of gas to the domestic market and help stimulate economic growth.
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