NNPC Ltd and TotalEnergies are set to invest $550 million in a new gas processing facility in southern Rivers state, according to an NNPC source on Wednesday.
The investment includes a gas processing plant and pipeline, with construction planned on the Ubeta onshore gas field jointly owned by Total and NNPC. This facility will supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant, a consortium involving NNPC, Shell, Total, and Eni.
Once operational, the facility aims to produce 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids.
Nigeria, boasting Africa’s largest natural gas reserves, often flares gas due to infrastructure limitations and capital constraints.
Analysts suggest this investment reflects positively on President Bola Tinubu’s efforts to attract energy sector investments, potentially bolstering confidence in Nigeria’s resource base and business environment.