Business & Strategy

NNPC, TotalEnergies Forge $550 Million Investment Pact for Gas Processing Facility in Rivers State

Written by Jerry Alomatu on June 20, 2024

News Views: 114

The Nigerian National Petroleum Company Limited (NNPCL) and TotalEnergies (TTEF) have inked a groundbreaking deal to inject $550 million into the establishment of a state-of-the-art gas processing facility in Rivers State. This strategic initiative aims to bolster both exports and domestic gas supplies, marking a significant milestone in Nigeria’s energy landscape.

The investment package encompasses the construction of a cutting-edge gas processing plant alongside the deployment of a dedicated pipeline network. This ambitious venture is poised to revolutionize the country’s gas sector, leveraging its vast resources to drive economic growth and sustainability.

According to insider reports from NNPC, a formal announcement unveiling the details of this transformative project is imminent and expected to be made public later this week. The proposed gas processing facility will be strategically situated on the Ubeta onshore gas field, a collaborative endeavor between Total and NNPC. This strategic location ensures seamless connectivity and optimal distribution channels, facilitating the efficient supply of gas to critical infrastructure such as the Nigeria Liquefied Natural Gas (NLNG) plant.

Upon completion, the facility is projected to yield a substantial output, generating an estimated 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids. This significant boost in production capacity is poised to address longstanding challenges and inefficiencies within the gas sector, unlocking immense value for both stakeholders and the broader economy.

Nigeria, endowed with Africa’s largest natural gas reserves exceeding 200 trillion cubic feet, has long grappled with the issue of gas flaring due to inadequate processing infrastructure and funding constraints. The advent of this landmark investment signals a paradigm shift in the country’s approach to gas utilization, offering a promising avenue for sustainable development and prosperity.

Commenting on the development, Clementine Wallop, Director of Sub-Saharan Africa at political risk consultancy Horizon Engage, underscored the transformative potential of the project. She emphasized that beyond enhancing Nigeria’s resource base, the initiative underscores the government’s unwavering commitment to fostering an enabling business environment and driving investor confidence.

As Nigeria continues its journey towards energy security and economic diversification, the partnership between NNPC and TotalEnergies stands as a testament to the immense potential of strategic collaboration in driving progress and prosperity.