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Shell to Provide Dangote with One billion Cubic feet of Gas.
Shell to provide Dangote with one billion cubic feet of gas.
Shell Petroleum Development Company of Nigeria Limited (SPDC) has recently announced a significant agreement to supply approximately one billion standard cubic feet of gas to the Dangote Fertilizer and Petrochemical Plant in Lekki, Lagos State, over the next decade. This landmark deal, which has already seen a Final Investment Decision (FID) being made, is the result of a strategic partnership between SPDC, Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company.
The gas supply is set to be sourced from Oil Mining Licence 35, a substantial onshore block within the NNPCL/Shell Joint Venture (JV) situated in the southern swamps of the western delta. Osagie Okunbor, the Managing Director of SPDC, emphasized the significance of the FID as a crucial step in supporting the Nigerian government’s ambitious ‘Decade of Gas’ initiative.
The Dangote Fertilizer Plant, a $2.5 billion complex, stands as the largest granulated urea fertiliser complex in Africa, boasting an annual production capacity of 3 million metric tonnes. With the country experiencing a decline in oil production, the collaboration between Shell and Dangote holds particular relevance amidst gas supply shortages within Nigeria.
Okunbor highlighted that the investment decision marks a critical milestone in the development of the gas-rich Iseni field, a part of the Okpokunou Cluster in OML 35. He further reiterated SPDC and its joint venture partners’ unwavering commitment to Nigeria’s ‘Decade of Gas’ vision, especially in advancing the domestic gas agenda.
The Managing Director emphasized that enhancing the delivery of natural gas to the domestic market is pivotal to driving accelerated industrialization and economic development in Nigeria. Additionally, he revealed that the FID signifies a positive stride towards the construction of essential infrastructure for the project, which is expected to generate employment opportunities through both direct and indirect channels.
This collaboration between Shell and Dangote represents a significant step forward in addressing the growing demand for gas within Nigeria, particularly in the context of the country’s broader economic and industrial development aspirations. The long-term nature of the agreement underscores the mutual commitment of both parties to sustainable and mutually beneficial partnerships that contribute to the socio-economic progress of the nation.
The partnership also aligns with global trends towards cleaner energy sources and sustainable industrial practices, reflecting a shared commitment to environmental stewardship and responsible resource management. As the global energy landscape continues to evolve, such strategic collaborations serve as exemplars of proactive and forward-thinking approaches to meeting energy demands while prioritizing environmental sustainability.
In conclusion, the gas supply agreement between Shell and Dangote represents a significant milestone in the energy and industrial sectors of Nigeria. The collaboration not only addresses immediate supply challenges but also underscores a shared commitment to long-term economic growth, job creation, and sustainable development. It serves as a testament to the potential of strategic partnerships in driving positive change and progress within the energy and industrial landscapes, both in Nigeria and beyond.
This partnership exemplifies the potential for mutually beneficial collaborations to drive positive change and progress within the energy and industrial landscapes, both in Nigeria and beyond. As the energy sector continues to evolve, such alliances will play a crucial role in advancing sustainable development and economic growth while also addressing the pressing energy needs of the nation.