The Presidency has announced the commencement of a $550 million upstream gas project between the Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies to develop the Ubeta field. This was revealed by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, at the inaugural US-Nigeria Strategic Energy Dialogue held in Washington, DC.
Olu Verheijen, speaking during a luncheon at the dialogue, disclosed that the project would produce 350 million standard cubic feet of gas per day upon completion. The project is seen as part of efforts to bolster Nigeria’s energy security and improve gas-to-power capabilities.
A statement by Morenike Adewunmi, Stakeholder Manager in the Office of the Special Adviser to the President on Energy, highlighted that President Tinubu’s energy reforms since June 2023 have focused on attracting investments and enhancing partnerships, including those with the US government.
Verheijen further elaborated that President Tinubu has issued five executive orders aimed at offering fiscal incentives and reducing the cost and time involved in gas infrastructure development. These reforms are expected to unlock up to $2.5 billion in new oil and gas investments.
She also acknowledged the crucial role of international financial partners like the US government, World Bank, and African Development Bank, in expanding access to reliable electricity across Nigeria through both grid and off-grid solutions.
In July, NNPCL and TotalEnergies announced their plan to invest $550 million to develop gas facilities in Rivers State. This is part of Nigeria’s larger strategy to tap into its vast natural gas reserves and reduce gas flaring.
NNPCL also signed a Project Development Agreement with Golar LNG, a North American firm, to establish an offshore LNG project in the Niger Delta, utilizing 400-500 million standard cubic feet of gas per day to produce LNG, LPG, and condensate.
Nigeria, which holds Africa’s largest natural gas reserves of over 200 trillion cubic feet, has struggled with inadequate processing infrastructure, leading to the flaring of gas. The current projects aim to reverse that trend by providing the necessary infrastructure and investment.