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

The Shell Petroleum Development Company (SPDC) has finalized plans to provide 100 million standard cubic feet of gas per day to the Dangote Fertiliser and Petrochemical Plant in Lekki, Lagos State.

The final investment decision, made in collaboration with joint venture partners Nigerian National Petroleum Company (NNPC) Limited, TotalEnergies EP Nigeria Limited, and Nigerian Agip Oil Company, underscores the commitment to boosting the nation’s domestic gas agenda.

Osagie Okunbor, Managing Director of SPDC, announced the decision in Port Harcourt, highlighting the significance of this step in the development of the gas-rich Iseni field within Oil Mining Lease 35 in Bayelsa State.

“This investment decision is a critical step in pursuing the development of the gas-rich Iseni field,” said Okunbor.

He emphasized the commitment to Nigeria’s industrialization and economic development through increased natural gas delivery to the domestic market.

The project aims to build a dedicated upstream facility to supply 100 million standard cubic feet of gas daily to the Dangote Fertiliser and Petrochemical Plant for 10 years. This initiative is expected to create jobs through direct and indirect employment, contributing to the nation’s economic growth.

In March 2022, SPDC, TotalEnergies, and NNPC signed an agreement to supply 70 million standard cubic feet of gas to Dangote Group fertiliser plants, supporting the goal of achieving self-sufficiency in fertilizer production.

Mele Kyari, NNPC’s Group Chief Executive Officer, emphasized the government’s commitment to eliminating fertilizer imports, further highlighting Dangote’s significant role in meeting domestic demand.

Aliko Dangote, President/CEO of Dangote Group, welcomed the additional gas supply, foreseeing increased foreign exchange earnings and solidifying Nigeria’s position as the continent’s second-largest producer of fertilizer.

The deal is expected to enable Dangote Fertiliser Limited, a $2.5 billion complex in Lagos State, to generate over $1.8 billion in export earnings annually.

With an annual production capacity of 3 million metric tonnes, the facility is Africa’s largest granulated urea fertiliser complex, contributing significantly to Nigeria’s agricultural sector.