The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced its approval of the $800 million Final Investment Decision (FID) on the Ima Gas Project. This development, located offshore in OMLs 112 and 117, is a partnership between AMNI International and TotalEnergies. NNPC Ltd.'s Group Chief Executive Officer, Mr. Bashir Ojulari, described the FID as a landmark development that confirms the viability of Nigeria's upstream gas sector. The project is expected to produce approximately 300 million standard cubic feet of gas per day at peak.
The Ima Gas Project will supply critical feedgas to Nigeria Liquefied Natural Gas Limited (NLNG) in support of its Train Seven expansion. This expansion aims to increase capacity at the Bonny Island plant from 22 million tons per annum to 30 Mtpa. The FID was made possible by the Presidential Directives of 2024, which provided fiscal incentives for non-associated gas, streamlined contracting, and lowered development costs. This project is the fourth major gas project to reach FID under President Bola Tinubu, following Iseni, Ubeta, and HI.
According to Ojulari, the FID on the Ima Gas Project is a decisive vote of confidence in Nigeria's gas sector and the bold reforms that have created competitive terms and a predictable investment environment. He commended the collaboration between AMNI, TotalEnergies, and the Nigerian financial sector, stating that the model of indigenous operator, international partner, and domestic capital is a template for future developments.
The Ima Gas Project is a significant milestone in Nigeria's efforts to develop its gas resources for industrialization, job creation, and long-term prosperity. NNPC Ltd. has reaffirmed its commitment to working with the government, regulators, and industry partners to sustain investment momentum. The project is expected to have a positive impact on Nigeria's economy and energy sector.
The Presidential Directives of 2024 played a crucial role in enabling the FID on the Ima Gas Project. The directives provided a favorable investment climate by offering fiscal incentives for non-associated gas, streamlining contracting processes, and reducing development costs. These incentives have attracted significant investment in Nigeria's gas sector.
The NNPC Ltd. has expressed its satisfaction with the progress made on the Ima Gas Project. The company's management believes that the project will not only boost Nigeria's gas production but also create new opportunities for economic growth and development. The project is expected to be completed in the near future, with production expected to commence soon.
The successful implementation of the Ima Gas Project is expected to have a positive impact on Nigeria's energy sector. The project will contribute to the country's efforts to increase its gas production and meet the growing demand for energy. With the FID now taken, the project is set to move into the development phase, with NNPC Ltd. and its partners working together to ensure its successful completion.
Key points
- The Ima Gas Project will produce approximately 300 million standard cubic feet of gas per day at peak.
- The project is expected to supply critical feedgas to Nigeria Liquefied Natural Gas Limited (NLNG) in support of its Train Seven expansion.
- The FID on the Ima Gas Project is a decisive vote of confidence in Nigeria's gas sector and the bold reforms that have created competitive terms and a predictable investment environment.
