Shell to Supply 100 Million Cubic Feet of Gas Daily to Dangote Fertiliser Plant

Afaf Fahchouch
Afaf Fahchouch
3 Min Read
Shell to Supply 100 Million Cubic Feet of Gas Daily to Dangote Fertiliser Plant

The Shell Petroleum Development Company of Nigeria Limited has made its final investment decision, in collaboration with joint venture partners including the Nigerian National Petroleum Company Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company. The decision revolves around establishing a dedicated upstream facility to provide 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant situated in Lekki, Lagos State.

According to a statement released on Sunday, Shell’s Managing Director, Osagie Okunbor, announced the final investment decision in Port Harcourt, describing it as a significant move in alignment with the Nigerian government’s ‘Decade of Gas’ initiative. The decision entails a commitment to building infrastructure that will supply the specified amount of gas to the Dangote facility for a duration of 10 years.

Osagie Okunbor emphasized that this decision is a critical step towards the development of the gas-rich Iseni field, a part of the Okpokunou Cluster in Oil Mining Lease 35, located in Sagbama Local Government Area of Bayelsa State. The move is seen as a strategic contribution to Nigeria’s ambition for a ‘Decade of Gas,’ particularly focusing on the domestic gas agenda.

The Managing Director stated that increasing the delivery of natural gas to the domestic market is crucial for expediting industrialization and economic development in Nigeria. The project is expected to generate employment opportunities, both directly and indirectly, aligning with the country’s goals.

The Dangote Fertiliser and Petrochemical Plant, touted as Africa’s largest granulated urea fertiliser complex, currently produces around 65% of Nigeria’s domestic fertiliser requirements. The gas supply from Shell aims to enhance the plant’s capacity, contributing to the company’s commitment to fulfilling promises to the Nigerian people and government.

This development follows Shell’s agreement in March 2022 to supply 70 million standard cubic feet of gas daily to the Dangote Fertiliser Company. Aliko Dangote, the President and Chief Executive of the Dangote Group, had highlighted that the additional gas supply would bolster production, supporting both local needs and export requirements. He also emphasized its potential to bring in more foreign exchange to Nigeria, reinforcing the country’s position as the continent’s second-largest fertiliser producer.


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