After a successful implementation, operations have effectively commenced in Nigeria’s $550M Ubeta upstream gas project. The multimillion-dollar upstream gas project between the Nigerian National Petroleum Company Limited (NNPC Ltd.) and TotalEnergies has been commended by many. The Special Adviser to the President on Energy, Olu Verheijen, disclosed this during an inaugural US-Nigeria Strategic Energy Dialogue. The dialogue was hosted by the U.S. State Department in Washington, DC. The project has made commendable strides since its signing ceremony in Abuja in June 2024.
The Ubeta field, discovered in 1964, is located northwest of Port Harcourt, Rivers State. Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas daily when operational. Furthermore, she noted that major energy reforms introduced by President Tinubu since June 2023 focused on aspects such as improving energy security. It also focused on attracting investments and deepening collaboration with key partners, including the US government.
The State of Affairs Regarding the $550M Ubeta Upstream Gas Project
The Ubeta upstream gas project is expected to have unprecedented implications in Nigeria and West Africa. Verheijen noted that the federal government’s reforms had improved the viability of the country’s gas-to-power value chain. According to her, the reforms included initiatives to improve cash flows in electricity distribution through smart metering. It also entailed payment of outstanding debts owed to investors and reducing carbon emissions from gas production. She added that the President issued five new executive orders to support the reform efforts. The orders aimed to provide fiscal incentives for investment and reduce the cost and time of finalizing and implementing contracts to develop and expand gas infrastructure. The presidential aide said the directives are aimed to unlock up to $2.5 billion in new oil and gas investments in the country immediately.
The Significance of the Multimillion-dollar Project
The Ubeta upstream gas project is one of the projects that has strengthened diplomatic relations between the United States and Nigeria. The U.S. Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey Pyatt, said dialogues regarding the project were apt and strategic.“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonisation, and economic growth goals,” he said.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, led the Nigerian delegation to the event. Officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority attended. Furthermore, Nigerian Content Development and Monitoring Board, and NNPC Limited were also in attendance. The U.S. delegation included representatives from the Bureau of African Affairs, USAID, the U.S. Department of Energy, the U.S. Trade and Development Agency, and the Export-Import Bank.
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Other Significant Energy Projects in Nigeria
Apart from implementing the Ubeta upstream gas project, Nigeria has focused on other significant projects in the energy sector. One of these is the multibillion-dollar Nigeria-Morocco gas pipeline project. The pipeline would be an extension of the West African Gas Pipeline, which runs from Lagos, Nigeria, connecting to Cotonou, Benin; Lomé, Togo; and Tema and Takoradi, Ghana. The Nigeria-Morocco Gas Pipeline would connect to Abidjan, Cote d’Ivoire; Monrovia, Liberia; Freetown, Sierra Leone; Conakry and Guinea; Bissau. It will also link Guinea-Bissau, Banjul, Gambia, Dakar, Senegal, Nouakchott, Mauritania, and Tangiers, Morocco, with possible European extension through Cádiz, Spain.
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Africa’s largest gas-to-methanol plant construction in Nigeria
