Energy Gas Oil

Shell, TotalEnergies, NAOC agree to supply Dangote Fertiliser, Petrochemical 100mmscfd of gas

Photo caption: Dangote Refinery and Petrochemical


Photo caption: Managing Director, SPDC, operator of the joint venture, Osagie Okunbor

By Emeka Ugwuanyi
The Shell Petroleum Development Company of Nigeria Limited (SPDC) and its joint venture partners – Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company – have taken the final investment decision (FID) to build a dedicated upstream facility to supply 100 million standard cubic feet of gas per day to Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State, for 10 years.
In a statement by the Media Relations Manager, Abimbola Essien-Nelson, the Managing Director of SPDC, operator of the joint venture, Osagie Okunbor, disclosed this on Friday, February 2, 2024, in Port Harcourt describing the FID as a significant step in supporting the Nigerian government’s ‘Decade of Gas’ ambition.
The industry stakeholders commended this step by Shell Joint Venture and described it as an outstanding giving back and support to the society where a joint venture such as Shell JV operates. According to industry stakeholders who spoke to TBI Africa Magazine, the gas supply will help in local productions of fertilizer, petrochemical products and other ancillary produces, which in turn will make such products and outputs cheaper and affordable with immeasurable direct and indirect jobs.
Commenting on the FID, Okunbor 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 (OML) 35 located in Sagbama Local Government Area of Bayelsa State,” adding that SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and, particularly, the domestic gas agenda.
According to Okunbor, increasing the delivery of natural gas to the domestic market is key to accelerated industrialization and economic development of Nigeria.
The FID signals a positive step towards the construction of the required infrastructure for the project that is expected to create jobs through direct and indirect employment.
Dangote boasts Africa’s largest granulated urea fertiliser complex and produces around 65 percent of Nigeria’s domestic fertiliser requirements. The project will supply gas which will enhance the Dangote Fertiliser and Petrochemical Plant’s ability to deliver on its promise to the Nigerian people and government.

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