TotalEnergies, NNPC to invest $550m in Nigerian gas facility

In a bid to enhance both export and domestic gas supplies, Nigeria's state oil firm NNPC Ltd and TotalEnergies (TTEF.PA) are set to invest $550 million in a new gas processing facility in Rivers state, according to an unnamed NNPC source. The project will include a gas processing plant and a pipeline.

While TotalEnergies has declined to comment, the NNPC source indicated that an official announcement would be made soon. The facility will be located on the Ubeta onshore gas field, a joint venture between Total and NNPC, and will supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant. NLNG is a consortium comprising NNPC, Shell (SHEL.L), Total, and Italy's Eni (ENI.MI).

Upon completion, the plant is expected to produce 350 million standard cubic feet of gas per day and 10,000 barrels per day of associated liquids. Nigeria, which holds over 200 trillion cubic feet of Africa's largest natural gas reserves, currently flares much of its gas due to insufficient processing infrastructure and financial constraints.

Analysts suggest that this investment could be a sign that President Bola Tinubu's efforts to attract investment into Nigeria's energy sector are beginning to bear fruit. Clementine Wallop, director for sub-Saharan Africa at political risk consultancy Horizon Engage, commented, "The government will hope this project demonstrates confidence in both the quality of Nigeria's resource base and the administration's commitment to improving the business environment."