Shell plans gas supply to Dangote fertiliser plant

The Shell Petroleum Development Company of Nigeria Limited has concluded plans to supply 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State.

The SPDC said it took the final investment decision alongside its joint venture partners – Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company.

The decision is to “build a dedicated upstream facility to supply 100 million standard cubic feet of gas per day to Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State, for 10 years,” a statement made available to The PUNCH on Sunday stated.

According to the statement signed by the Shell Nigeria Media Relations Manager, Abimbola Essien-Nelson, the Managing Director of SPDC, Osagie Okunbor, disclosed in Port Harcourt Friday that the final investment decision was “a significant step in supporting the Nigerian government's ‘Decade of Gas' ambition”.

Okunbor had stated, “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 Oil Mining Lease 35 located in Sagbama Local Government Area of Bayelsa State.”

He was said to have added that SPDC and its joint venture partners remained committed to Nigeria's ‘Decade of Gas' ambition and, particularly, the domestic gas agenda.

According to Okunbor, increasing the delivery of natural gas to the domestic market is key to accelerated industrialisation and economic development in Nigeria.

“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.

“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,” the statement concluded.

In March 2022, Shell signed an agreement for a daily supply of 70 million standard cubic feet of gas to Dangote Fertiliser Company to boost production and for local and export purposes.

President and Chief Executive, Dangote Group, Aliko Dangote, who signed the agreement on behalf of the company two 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.”