The Nigerian government has launched a major $550 million gas development project in Rivers State. The project is a collaboration between the Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies, focusing on developing the Ubeta gas field.
The announcement was made by Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, during the US-Nigeria Strategic Energy Dialogue hosted by the US State Department in Washington, D.C. Verheijen stated that the project, once completed, will produce 350 million standard cubic feet of gas per day, significantly boosting Nigeria’s gas production capacity.
Verheijen highlighted President Tinubu’s recent energy reforms aimed at improving energy security and attracting foreign investment. Since June 2023, these reforms have targeted enhancing the country’s gas-to-power infrastructure and promoting partnerships with international players such as the US government.
Additionally, Verheijen noted that Tinubu has issued five executive orders offering fiscal incentives for oil and gas investments, reducing costs and speeding up project timelines. These measures aim to unlock up to $2.5 billion in new investments for Nigeria’s energy sector.
The Ubeta project is part of a broader effort to leverage Nigeria’s vast natural gas reserves, the largest in Africa, estimated at over 200 trillion cubic feet. Historically, Nigeria has faced challenges in processing and utilizing these reserves, often resorting to gas flaring due to infrastructure and capital limitations.
The Nigerian government is also working with partners like the World Bank and the African Development Bank to improve electricity access across the country, utilizing both grid and off-grid solutions.
In addition to the Ubeta project, NNPCL recently signed a deal with Golar LNG to develop an offshore liquefied natural gas (LNG) project in the Niger Delta, further expanding Nigeria’s gas processing capabilities.
This series of initiatives marks a significant step forward for Nigeria’s energy sector, positioning the country to maximize its natural gas resources and improve energy security for its population.
