Shell Announces Strategic Partnership To Supply Gas To Dangote Fertilizer Plant

The Shell Petroleum Development Company of Nigeria Limited has finalized its plans to provide a daily gas supply of 100 million standard cubic feet to the Dangote Fertiliser and Petrochemical Plant located in Lekki, Lagos State. The decision was made in collaboration with joint venture partners, including the Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company………CONTINUE READING

As part of the final investment decision, a dedicated upstream facility will be constructed to ensure a continuous supply of 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant in Lekki over a period of 10 years. The announcement, conveyed in a statement released on Sunday and signed by Shell Nigeria Media Relations Manager Abimbola Essien-Nelson, highlighted that the Managing Director of SPDC, Osagie Okunbor, revealed the decision in Port Harcourt on Friday.

Okunbor emphasized the significance of the investment decision in supporting the Nigerian government’s ‘Decade of Gas’ initiative. He explained that the move is a crucial step towards developing the gas-rich Iseni field, a part of the Okpokunou Cluster in Oil Mining Lease 35 situated in Sagbama Local Government Area of Bayelsa State.

The Managing Director underscored the commitment of SPDC and its joint venture partners to Nigeria’s ‘Decade of Gas’ ambition and the broader domestic gas agenda. Okunbor highlighted the importance of increasing natural gas delivery to the domestic market for accelerated industrialization and economic development in Nigeria.

The statement concluded by noting that the final investment decision signifies a positive stride toward constructing the necessary infrastructure for the project, expected to generate employment opportunities through both direct and indirect means. The Dangote Fertiliser and Petrochemical Plant, renowned as Africa’s largest granulated urea fertiliser complex, currently fulfills approximately 65% of Nigeria’s domestic fertiliser needs. The gas supply from this project is poised to enhance the plant’s capacity to fulfill its commitments to the Nigerian people and government.

In a related development from March 2022, Shell had previously signed an agreement to supply 70 million standard cubic feet of gas daily to the Dangote Fertiliser Company, aimed at boosting production for both local consumption and export purposes. Aliko Dangote, President and Chief Executive of Dangote Group, highlighted the additional gas supply as a means to bring in more foreign exchange to Nigeria and solidify the country’s position as the continent’s second-largest fertilizer producer.

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Source: Bushradiogist