FG launches $550m Ubeta upstream gas project
The Presidency has officially launched a $550 million upstream gas project between Nigerian National Petroleum Corporation Limited and TotalEnergies, which will develop the Ubeta field.Olu Verheijen, Special Adviser to the President on Energy, made the announcement during the inaugural US-Nigeria Strategic Energy Dialogue, which was hosted by the US State Department in Washington, DC.
At a luncheon held as part of the dialogue, Verheijen stated that the project is expected to produce 350 million standard cubic feet of gas per day once operational.
A statement about the event, signed by Morenike Adewunmi, Stakeholder Manager, Office of the Special Adviser to the President on Energy, was made available to the News Agency of Nigeria on Tuesday in Abuja.
Verheijen explained that President Bola Tinubu's major energy reforms, which began in June 2023, are intended to improve energy security, attract investment, and strengthen partnerships with key stakeholders, including the US government.
These reforms are expected to strengthen Nigeria's gas-to-power value chain.
Key initiatives include improving cash flows in electricity distribution through smart metering, settling outstanding debts with investors, and lowering carbon emissions from gas production.
Verheijen explained that President Bola Tinubu has issued five new executive orders to aid reform efforts.
These orders seek to provide fiscal incentives for investment, streamline the process of finalizing and implementing contracts, and reduce the costs associated with developing and expanding natural gas infrastructure.
The directives are expected to generate up to $2.5 billion in new oil and gas investment in Nigeria.
She also acknowledged the critical support of financial and technical partners such as the US government, the World Bank, and the African Development Bank in expanding electricity access and reliability via grid and off-grid solutions.
She expressed confidence in Nigeria's energy sector prospects, particularly given the renewed emphasis on gas as a transition fuel to meet the country's Paris climate agreement commitments.
"We see resilient demand for gas through the energy transition as it is a readily available, cost-effective backup to renewables while cutting emissions by half immediately," according to her.
Verheijen recalled that the Dialogue was established in June 2023 to provide a platform for the US and Nigerian governments, as well as the private sector, to deepen bilateral cooperation and advance the implementation of shared energy and climate action goals.
"Nigeria aims to establish a strong regulatory framework and attract new investments in gas production for power generation, transportation, and clean cooking.
"I cannot overstate the significance of our longstanding relationship with the United States and this inaugural dialogue.
"The goal of this dialogue is for us to collaborate on solutions that will close the energy access gap for nearly 100 million Nigerians who still lack reliable power.
"We want existing and potential partners to better understand our areas of priority so that our collaboration can be better targeted, and with tangible outcomes," it was reported.
Geoffrey Pyatt, US Assistant Secretary of the State Department's Bureau of Energy Resources, described the dialogue as timely and strategic.
"The inaugural U.S.-Nigeria Strategic Energy Dialogue has laid the groundwork for increased energy collaboration between the two countries.
"Together, we're advancing shared energy security, decarbonisation, and economic growth goals," said the leader.
The US State Department announced the formation of the Clean Energy Alliance of Nigeria at the Dialogue. This new initiative seeks to mobilize stakeholders and encourage investment in clean energy projects in Nigeria.
Leave A Comment