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Shell, Partners Seal 10-Year Gas Supply Deal For Dangote Plant

The Shell Petroleum Development Company of Nigeria Limited (SPDC) says it has taken a final decision with its joint venture partners to build a dedicated upstream facility to supply 100 million standard cubic feet of gas per day to Dangote Fertiliser and Petrochemical Plant for 10 years.

With this deal, the SPDC and its joint venture partners comprising the Nigerian National Petroleum Company Limited (NNPCL), TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company (NAOC) aim to supply gas which will enhance the Dangote Fertiliser and Petrochemical Plant’s ability to deliver on its promise to the Nigerian people and government.

Disclosing this on Friday in Port Harcourt, the Managing Director of SPDC, operator of the joint venture, Osagie Okunbor, described the FID as a significant step in supporting the Nigerian government’s ‘Decade of Gas’ ambition.

“This investment decision 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 located in Sagbama Local Government Area of Bayelsa State,” Okunbor said,

He added that SPDC and its joint venture partners remained committed to Nigeria’s ‘Decade of Gas’ ambition and, particularly, the domestic gas agenda.

According to Okunbor, increasing the delivery of natural gas to the domestic market is key to accelerated industrialization and economic development of Nigeria.

The FID signals a positive step towards the construction of the required infrastructure for the project that is expected to create jobs through direct and indirect employment.

Dangote boasts of Africa’s largest granulated urea fertiliser complex and produces around 65 percent of Nigeria’s domestic fertiliser requirements.

Dangote Fertiliser and Petrochemical Plant is situated at the Lekki Free Trade Zone, Lagos State.

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