KEY POINTS
- NNPC Ltd. welcomes the $800 million Final Investment Decision on the Ima Gas Project.
- The offshore project is expected to produce about 300 million standard cubic feet of gas daily at peak.
- Gas output will supply feedgas to NLNG for its Train Seven expansion.
- Ima is the fourth major gas project to reach FID under President Bola Tinubu.
MAIN STORY
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has welcomed the $800 million Final Investment Decision (FID) on the Ima Gas Project, describing it as a significant development for Nigeria’s upstream gas sector.
The Group Chief Executive Officer of NNPC Ltd., Mr Bashir Ojulari, said the project demonstrates the viability of investment in the country’s gas industry and reflects growing confidence in the sector.
Located offshore in Oil Mining Leases (OMLs) 112 and 117, the project is being developed by AMNI International in partnership with TotalEnergies. It is expected to produce about 300 million standard cubic feet of gas per day at peak production.
The gas will provide feedgas for Nigeria Liquefied Natural Gas Limited (NLNG), supporting the company’s Train Seven expansion. The expansion is expected to raise production capacity at the Bonny Island plant from 22 million tonnes per annum to 30 million tonnes per annum.
According to NNPC, the FID was supported by Presidential Directives issued in 2024 that introduced fiscal incentives for non associated gas, streamlined contracting processes and reduced development costs.
Ima becomes the fourth major gas project to reach FID under the Tinubu administration, following Iseni, Ubeta and HI.
Ojulari described the investment decision as a vote of confidence in Nigeria’s gas sector and the reforms aimed at creating more competitive terms and a predictable environment for investors.
He also commended the partnership involving AMNI, TotalEnergies and the Nigerian financial sector, describing the combination of an indigenous operator, an international partner and domestic capital as a model for future gas developments.
NNPC said it would continue working with government, regulators and industry stakeholders to sustain investment in the sector and develop Nigeria’s gas resources for industrialisation, job creation and long term economic growth.
THE ISSUES
- The $800 million investment decision adds another major gas development to Nigeria’s project pipeline, with the Ima project expected to deliver up to 300 million standard cubic feet of gas daily at peak production.
- The project is directly linked to NLNG’s Train Seven expansion, with its gas output expected to provide feedgas for the expansion of the Bonny Island facility.
- The project also reflects the financing structure highlighted by NNPC, combining an indigenous operator, an international energy company and domestic financial institutions.
- The FID followed fiscal and contracting measures introduced through the 2024 Presidential Directives, which NNPC said helped lower development costs and improve investment conditions for non associated gas projects.
WHAT’S BEING SAID
“a decisive vote of confidence in Nigeria’s gas sector and in the bold reforms that have created competitive terms and a predictable investment environment. – Bashir Ojulari, Group Chief Executive Officer, NNPC Ltd.
WHAT’S NEXT
NNPC said it would continue working with the government, regulators and industry partners to sustain investment momentum and deploy Nigeria’s gas resources for industrialisation, job creation and long term prosperity.
BOTTOM LINE
The $800 million Ima Gas Project FID adds another major development to Nigeria’s upstream gas pipeline. Its planned output is expected to support NLNG’s Train Seven expansion and strengthen domestic gas investment.
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