The Nigerian National Petroleum Company Limited (NNPC Ltd) has welcomed the $800 million Final Investment Decision (FID) on the Ima Gas Project. This development is a significant boost for Nigeria's upstream gas industry, demonstrating confidence in the sector. The Ima project, operated by TotalEnergies in partnership with Nigerian independent producer AMNI International, will develop gas resources in OMLs 112 and 117 offshore Rivers State. The project is expected to produce about 300 million standard cubic feet of gas per day at peak.
The Ima Gas Project is a major milestone in Nigeria's efforts to harness its gas resources. The project, located offshore on OMLs 112 and 117, near Bonny Island, Rivers State, has been in development for several years. TotalEnergies and AMNI International have collaborated to bring the project to this stage. According to TotalEnergies, the field is expected to commence production in 2028 and reach a plateau of 350 million cubic feet per day. The gas will supply about one-third of the gas required for NLNG's Train 7 expansion.
The Train 7 project is designed to increase NLNG's capacity from 22 million tonnes per annum to 30 million tonnes. This expansion will provide additional capacity for Nigeria's LNG exports. The NNPC said the development reinforces the need to sustain reforms and partnerships capable of converting Nigeria's gas reserves into productive assets, industrial feedstock, export earnings, and employment. The Ima decision demonstrates the potential of partnerships involving indigenous operators, international energy companies, and Nigerian financial institutions.
The Ima gas resource was discovered in 1973 but remained undeveloped for over five decades. The $800 million investment will finally move the resource towards commercial production, enabling it to contribute to Nigeria's economy. The project is the fourth major gas project to reach FID since the current administration assumed office. The Federal Government has attributed recent investment decisions partly to measures introduced in 2024 to improve fiscal competitiveness, streamline contracting processes, and reduce development costs for non-associated gas projects.
The Ima development has a significant Nigerian financing and local-content component. Nigerian financial institutions arranged 77% of the project's financing, while AMNI, a Nigerian-owned exploration and production company, holds the majority interest in the asset. About 60% of the project workforce is expected to come from host communities, including Bonny, Finima, and Andoni in Rivers State. The project is expected to add a new source of gas to Nigeria's LNG supply chain while supporting the planned expansion of NLNG's capacity.
NNPC Ltd Group Chief Executive Officer, Bashir Bayo Ojulari, described the FID as "a decisive vote of confidence in Nigeria's gas sector" and the reforms aimed at creating more competitive and predictable investment conditions. The NNPC said it would continue working with government, regulators, and industry stakeholders to sustain investment in the sector and deploy gas resources for industrialization, job creation, and economic growth.
The $800 million Ima Gas Project investment is a significant milestone in Nigeria's upstream sector. The project is expected to have a positive impact on the economy, creating jobs and stimulating growth. With production targeted for 2028, the project will contribute to Nigeria's LNG exports and support the country's economic development. The NNPC and its partners are committed to ensuring the project's success and maximizing its benefits for Nigeria.
Key points
- The Ima Gas Project is expected to produce 300 million standard cubic feet of gas per day at peak.
- The project will supply about one-third of the gas required for NLNG's Train 7 expansion.
- Nigerian financial institutions arranged 77% of the project's financing.
