TotalEnergies Unveils $750 Million Gas Investment to Bolster Nigeria’s LNG Supply
French energy giant TotalEnergies has announced plans to invest approximately $750 million (N1.25 trillion) in Liquefied Natural Gas (LNG) production.
This initiative aims to expand the nation’s gas production capacity and further enhance LNG supply, reinforcing Nigeria’s position in the global energy market.
The announcement was made during the France-Nigeria Business Forum in Paris, where Mike Sangster, Senior Vice-President for Africa, Exploration and Production at TotalEnergies, disclosed the company’s intent to sanction the dry gas project, Ima, in 2024.
“We have another dry gas project called Ima, which we hope to sanction next year for about $750 million,” Sangster stated.
The project will be executed in partnership with a local firm, emphasising the company’s commitment to fostering collaboration with indigenous partners.
The new investment follows TotalEnergies’ recent $500 million injection into the Ubeta onshore field, a joint venture with the Nigerian National Petroleum Company (NNPC).
The Ubeta field, located in the OML 58 onshore licence, is set to commence production in 2027.
It will feature a six-well cluster connected to existing facilities via an 11-kilometre pipeline and is expected to achieve a plateau production capacity of 300 million cubic feet per day, equivalent to 70,000 barrels of oil per day, including condensates.
The gas produced will be supplied to the Nigeria LNG plant in Bonny Island, where TotalEnergies holds a 15 per cent stake.
Since assuming office in May 2023, President Bola Tinubu has introduced measures to address long-standing challenges in the oil and gas sector.
These include signing two executive orders aimed at enhancing operational efficiency and attracting investments.
The Nigerian government has also launched policies to stimulate deep-water gas exploration, offering tax breaks to lure $10 billion in investments.
Sangster acknowledged the progress made under these reforms while emphasising the need for further regulatory improvements.
“There is still more to be done in terms of regulation, simplifying and accelerating processes, but we appreciate the changes over the past year,” he remarked.
He added that the government’s initiatives had renewed TotalEnergies’ confidence in Nigeria’s energy sector.
However, Sangster called for additional adjustments in local content rules, particularly in deep-water projects, to attract more international contractors.
He noted that easing these restrictions would significantly enhance Nigeria’s ability to compete in the global energy market and increase production output.
The strategic investments by TotalEnergies align with Nigeria’s ambition to strengthen its gas production capacity and harness its vast natural resources for economic growth.
