The Shell Petroleum Development Company (SPDC) has finalized plans to provide 100 million standard cubic feet of gas per day to the Dangote Fertilizer and Petrochemical Plant in Lekki, Lagos State. The decision, made in collaboration with joint venture partners, including the Nigerian National Petroleum Company (NNPC) Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company, aligns with the Nigerian government’s ‘Decade of Gas’ initiative.
Managing Director of SPDC, Osagie Okunbor, highlighted the significance of the final investment decision in supporting the nation’s gas ambitions.
The investment aims to construct a dedicated upstream facility to supply gas to the Dangote Fertilizer and Petrochemical Plant for a duration of 10 years.
Okunbor emphasized the importance of increasing natural gas delivery to the domestic market for accelerated industrialization and economic development in Nigeria.
The project is expected to create jobs through direct and indirect employment, contributing to the growth of the Nigerian economy.
The Dangote Fertilizer and Petrochemical Plant, located in Lagos State, is recognized as Africa’s largest granulated urea fertilizer complex.
Producing approximately 65 per cent of Nigeria’s domestic fertilizer requirements, the plant plays a pivotal role in the country’s efforts to achieve self-sufficiency in fertilizer production.
This collaboration builds upon a previous agreement signed in March 2022, where SPDC, TotalEnergies, and NNPC committed to supplying 70 million standard cubic feet of gas to Dangote Group fertilizer plants.
The increased gas supply is expected to boost production, enhance exports, and contribute to Nigeria’s economic growth.
President/CEO of Dangote Group, Aliko Dangote, expressed optimism about the additional gas supply, stating it would help generate more than $1.8 billion in export earnings.
The Dangote Fertilizer Limited complex, with a production capacity of 3 million metric tonnes per year, represents a $2.5 billion investment on 500 hectares of land in Ibeju Lekki, Lagos State.
Between Depleting Workforce And Declining Productivity