Shell Plc has announced its decision to proceed with the development of a gas supply facility in Nigeria to cater to a fertiliser plant owned by Africa’s business mogul Aliko Dangote.
In a statement, the company revealed that the new facility will provide 100 million standard cubic feet of gas per day from the Iseni field to the Dangote Fertiliser and Petrochemical plant for 10 years.
This agreement according to Energy News Africa, involves Shell and its joint venture partners TotalEnergies, Eni, and the state oil firm NNPC Ltd.
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The $2.5 billion plant, considered Africa’s largest urea complex with an annual output of 3 million tonnes, is set to fulfil 65% of Nigeria’s fertiliser requirements and can cater to all major markets in the sub-region.
Osagie Okunbor, Shell’s Nigeria chief, hailed the agreement as a pivotal step towards the development of the gas-rich Iseni field, located within the Okpokunou Cluster in Oil Mining Lease 35 in Bayelsa state, known for its oil wealth.
With Nigeria boasting the continent’s largest gas reserves, exceeding 200 trillion cubic feet, there is a concerted effort to tap into these reserves to bolster supply to industries, power plants, and for export purposes.
Okunbor emphasized that the project will not only bolster gas delivery to the domestic market but also serve as a catalyst for economic growth in the region.
