In this Article We Will Be Looking at Shell and Partners to Take Final Investment Decision on Gas Supply to Dangote Fertilizer Plant.
Shell Plc has made a final investment decision to build a gas supply facility in Nigeria to feed a fertilizer plant owned by Aliko Dangote, the company said in a statement. The new facility will supply 100 MMf3 of gas per day from the Iseni field to the Dangote Fertilizer and Petrochemical plant for 10 years, according to the deal agreed by Shell and its joint venture partners Total Energies, Eni and the state oil firm NNPC Ltd.
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The $2.5-billion plant, Africa’s largest urea complex with a 3-million-tonne output per year, on 500 hectares of land in Ibeju Lekki, Lagos State, Nigeria. Accounts for 65 per cent of Nigeria’s fertilizer needs and can supply all the major markets in the sub-region. It is the largest granulated urea fertiliser complex in Africa with an annual production capacity of 3 million metric tonnes. “The agreement is a critical step in pursuing the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Oil Mining Lease 35″ in the oil-rich Bayelsa state, Shell’s Nigeria chief, Osagie Okunbor, said in an e-mail.
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Nigeria holds Africa’s largest gas reserves of more than 200 Tcf and is seeking to develop the reserves to boost supply to industries, power plants, and for exports. According to the statement, Okunbor said that SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and, particularly, the domestic gas agenda, adding that increasing the delivery of natural gas to the domestic market is key to accelerated industrialisation and economic development in Nigeria.
He said, “The FID 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 boasts Africa’s largest granulated urea fertiliser complex and produces around 65 per cent of Nigeria’s domestic fertiliser requirements.
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“The project will supply gas which will enhance the Dangote Fertiliser and Petrochemical Plant’s ability to deliver on its promise to the Nigerian people and government.’
President/CEO, Dangote Group, Aliko Dangote, who signed the agreement on behalf of the company 2 years ago, said the additional gas supply would “help us bring in more foreign exchange to Nigeria and confirm Nigeria’s position as the continent’s second-largest producer of fertiliser.” He said the new gas supply deal would enable his company to generate more than $1.8 billion in export earnings.