Shell to establish gas supply facility for Dangote fertiliser in Nigeria

Shell Plc has decided to move forward with the establishment of a gas supply facility in Nigeria to feed a fertiliser plant owned by Aliko Dangote, the richest man in Africa, according to Reuters citing the company’s statement.

Per the agreement reached by Shell, TotalEnergies, and the state oil company NNPC Ltd., the new facility will supply 100 million standard cubic feet of gas per day from the Iseni field to the Dangote fertiliser and petrochemical plant for ten years.

With an annual output of three million tons, the $2.5 billion plant is Africa’s largest urea complex, meeting 65 per cent of Nigeria’s fertiliser needs and having the capacity to supply all of the major markets in the sub-region.

“The agreement is a critical step in pursuing the development of the gas-rich Iseni field, which is part of the Okpokunou Cluster in Oil Mining Lease 35” Shell’s Nigeria chief, Osagie Okunbor, said in an email.

He further stated that the new project would boost economic growth by increasing the amount of gas delivered to the domestic market.

With more than 200 trillion cubic feet of gas reserves, Nigeria is the largest gas-holding country in Africa. Moreover, the country is working to develop its reserves to increase gas supply to factories, power plants, and exports.