The Shell Petroleum Development Company of Nigeria Limited (SPDC) said it has reached an agreement with its joint venture partners to establish a specialized upstream facility to deliver 100 million standard cubic feet of gas per day to the Dangote Fertilizer and Petrochemical Plant for ten years.
With this agreement, the SPDC and its joint venture partners, the Nigerian National Petroleum Company Limited (NNPCL), TotalEnergies EP Nigeria Limited, and the Nigerian Agip Oil Company (NAOC), hope to supply gas that will improve the Dangote Fertilizer and Petrochemical Plant’s ability to deliver on its promises to the Nigerian people and government.
Osagie Okunbor, Managing Director of SPDC, the joint venture’s operator, disclosed this on Friday in Port Harcourt. He termed the FID as a crucial milestone in helping the Nigerian government’s ‘Decade of Gas’ objective.
“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,” Okunbor said in a press release.
He also stated that SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ initiative, particularly the domestic gas agenda.
According to Okunbor, expanding natural gas supplies to the domestic market is critical for Nigeria’s rapid industrialization and economic development.
The FID is a positive step toward the construction of the project’s infrastructure, which is expected to produce jobs both directly and indirectly.
Dangote owns Africa’s largest granulated urea fertilizer facility and produces around 65 percent of Nigeria’s domestic fertiliser demand.
The Dangote Fertilizer and Petrochemical Plant is located in the Lekki Free Trade Zone in Lagos State.