The Shell Petroleum Development Company of Nigeria Limited (SPDC) has finalized plans, in collaboration with joint venture partners, to provide a daily supply of 100 million standard cubic feet of gas to the Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State. This decision, reached after the final investment decision, aims to construct a dedicated upstream facility for a ten-year gas supply agreement.
The joint venture partners involved in this significant move include the Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company. The announcement underscores the commitment to supporting Nigeria’s ‘Decade of Gas’ ambition, according to a statement by the Shell Nigeria Media Relations Manager, Abimbola Essien-Nelson.
Osagie Okunbor, the Managing Director of SPDC, revealed that the final investment decision represents a critical step in the development of the gas-rich Iseni field, part of the Okpokunou Cluster in Oil Mining Lease 35 located in Bayelsa State. Okunbor emphasized the joint venture’s dedication to Nigeria’s gas agenda and the broader goal of fostering accelerated industrialization and economic development.
Increasing the delivery of natural gas to the domestic market is seen as pivotal to achieving these objectives. The project, set to create both direct and indirect employment opportunities, aligns with the ‘Decade of Gas’ initiative. Dangote Fertiliser and Petrochemical Plant, Africa’s largest granulated urea fertiliser complex, stands to benefit from the enhanced gas supply, supporting its commitment to meeting Nigeria’s domestic fertiliser requirements.
The collaboration between Shell and Dangote is not new, as a similar agreement for a daily supply of 70 million standard cubic feet of gas was signed in March 2022. Aliko Dangote, President and Chief Executive of the Dangote Group, expressed optimism that the additional gas supply would contribute to increased foreign exchange earnings for Nigeria, reinforcing the country’s position as a major fertiliser producer on the continent.