The initiative will involve the construction of a dedicated gas facility by the JV to supply 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant located in Lekki, Lagos State for a period of 10 years
Shell Petroleum Development Company of Nigeria and its JV partners take FID on the development of the Iseni gas field. (Credit: Bruce Tunget from Pixabay)
Shell Petroleum Development Company of Nigeria (SPDC) and its joint venture (JV) partners have decided to move ahead with the development of the Iseni gas field in Nigeria to supply a fertiliser plant.
The company’s JV partners include Nigerian National Petroleum (NNPC), TotalEnergies EP Nigeria, and Nigerian Agip Oil (NAOC). SPDC is the operator of the JV.
The initiative will involve the construction of a dedicated gas facility by the JV to supply 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant. Located in Lekki, Lagos State, the plant will be supplied with gas for 10 years.
SPDC managing director Osagie Okunbor said that the FID marks a major step in underpinning the Nigerian government’s ‘Decade of Gas’ vision.
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 35 located in Sagbama Local Government Area of Bayelsa State.”
He further said that the project will boost gas deliveries to the domestic market and contribute to drive economic growth.
The $2.5bn Dangote Fertiliser and Petrochemical Plant is said to be the largest urea complex in the African continent. Its production capacity is three million tonnes per annum, which meets 65% of the fertiliser requirements in Nigeria, reported Reuters.
Furthermore, the plant caters to all the key markets in the sub-region.
Nigeria Minister of State, Petroleum Resources (Gas), Ekperikpe Ekpo said: “I am extremely excited with SPDC, NNPCL, TotalEnergies, NAOC who worked assiduously for the realisation of the FID on the Iseni project that is capable of producing the equivalent of 400MW of energy, which will be delivered into the domestic market when construction is completed.
“This is a significant milestone in our quest to achieving our aspirations of the Decade of Gas initiative.”
Last month, Royal Dutch Shell signed an agreement to divest SPDC to Renaissance. The buyer is a group of four Nigeria-based exploration and production firms and an international energy group.