The Shell Petroleum Development Company (SPDC) has concluded plans to supply 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State.
The SPDC said it took the final investment decision alongside its joint venture partners – Nigerian National Petroleum Company (NNPC) Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company.
According to a statement by Shell Nigeria Media Relations Manager, Abimbola Essien-Nelson, this was made known by the Managing Director of SPDC, Osagie Okunbor, in Port Harcourt, where he noted that the final investment decision was a significant step in supporting the Nigerian government’s ‘Decade of Gas’ ambition.
The statement noted that the decision is 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,
What the Managing Director of SPDC is saying
- 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.”
According to the statement, Okunbor said that SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and, particularly, the domestic gas agenda, adding that increasing the delivery of natural gas to the domestic market is key to accelerated industrialisation and economic development in Nigeria.
- He said, “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 per cent 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.’’
What you should know
- Recall that in March 2022, SPDC, TotalEnergies and the NNPC had signed an agreement to supply 70 million standard cubic feet of gas to Dangote Group fertiliser plants to help ramp up production and increase exports.
- The Group Chief Executive Officer (GCEO) of the NNPC, Mele Kyari, had during the signing ceremony said that Dangote’s plants supplied 65% of Nigeria’s domestic fertiliser requirements.
- Kyari said, “It’s government’s drive to ensure that we become self sufficient in the production of fertiliser in our country, and specifically for this year, it’s zero import of fertiliser into our country.’’
- President/CEO, Dangote Group, Aliko Dangote, who signed the agreement on behalf of the company 2 years ago, said the additional gas supply would “help us bring in more foreign exchange to Nigeria and confirm Nigeria’s position as the continent’s second-largest producer of fertiliser.”
- He said the new gas supply deal would enable his company to generate more than $1.8 billion in export earnings.
- Dangote Fertiliser Limited is a $2.5 billion complex sited on 500 hectares of land in Ibeju Lekki, Lagos State, Nigeria. It is the largest granulated urea fertiliser complex in Africa with an annual production capacity of 3 million metric tonnes.