TotalEnergies, NNPC to Invest $550 Million in Nigeria Gas Facility
(Reuters) — Nigeria's state oil firm NNPC Ltd. and TotalEnergies will invest $550 million to develop a gas processing facility in southern Rivers state to boost exports and domestic supplies, an NNPC source said on Wednesday.
The investment would include a gas processing plant and a pipeline, said the source who is privy to the agreement but could not be named as they were not authorized to speak on the issue.
Total declined to comment.
The NNPC source said an announcement would be made this week.
The gas processing facility will be built on the Ubeta onshore gas field, jointly owned by Total and NNPC, and will supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant.
NLNG is a consortium between NNPC, Shell, Total and Italy's Eni.
When completed, the plant would generate 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids, said the source.
Nigeria, which holds Africa's largest natural gas reserves of more than 200 trillion cubic feet, flares - or burns off - gas from its oil fields because it lacks processing infrastructure and faces capital constraints.
The latest investment could mean President Bola Tinubu's bid to attract investment into Nigeria's energy sector is beginning to succeed, analysts said.
"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," Clementine Wallop, director, sub-Saharan Africa at political risk consultancy Horizon Engage, said.
Energy analysts say Nigeria has failed to increase its exports to the European Union after the bloc sought alternative supplies to make up for lost Russian imports because of the Ukraine war. Locally, Nigeria is struggling to feed its gas power plants that generate most of its grid electricity.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments