The Shell Petroleum Development Company of Nigeria said on Sunday that it has taken a final investment decision to construct a facility to supply 100 million standard cubic feet of gas per day to the Dangote Fertilizer and Petrochemical plant in the city of Lekki, in Lagos State, for 10 years.
The company said that its venture partners in the project are the Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited and Nigeria Agip Oil Company.
"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 Mining Lease 35 located in Sagbama Local Government Area of Bayelsa state," said Osagie Okunbor, managing director of SPDC.
Bayelsa state is in Nigeria's oil-rich Niger Delta, where nearly all of the country's oil is produced.
Okunbor said the investment decision also signals a "positive step towards the construction of the required infrastructure for the project that is expected to create jobs through direct and indirect employment".
Dangote Fertilizer is the largest granulated urea fertilizer complex in Africa with an annual production capacity of 3 million metric tons.
It produces around 65% of Nigeria's domestic fertilizer requirements.
Shell didn't provide details on the cost of the Dangote gas project or when construction would start.
Nigeria held an estimated 206.5 trillion cubic feet of proved natural-gas reserves at the beginning of 2023, according to the NNPC and it is the seventh-largest world gas producer.
