KEY POINTS
- $800m Ima Gas Project reaches FID.
- Production could hit 300 MMscf/d.
- Gas will support NLNG Train 7.
The Nigerian National Petroleum Company Limited has welcomed the $800 million Final Investment Decision for the Ima Gas Project, describing the development as evidence that Nigeria’s upstream gas sector is becoming more attractive to investors.
The offshore project, being developed by AMNI International in partnership with TotalEnergies, is expected to produce about 300 million standard cubic feet of gas per day at peak production.
NNPC said the investment represents an important step in unlocking Nigeria’s gas resources and strengthening the country’s position as a major gas-producing and exporting nation.
The Ima Gas Project is located offshore across Oil Mining Leases 112 and 117.
Once operational, its gas production is expected to provide feedgas for Nigeria LNG Limited, supporting the expansion of the company’s Bonny Island facility.
The NLNG Train 7 expansion is designed to increase the plant’s production capacity from 22 million tonnes per annum to 30 million tonnes per annum.
The availability of additional domestic gas supplies is critical to the expansion because sustained feedgas production is required to keep LNG facilities operating at higher capacity. NNPC attributed the investment decision partly to reforms introduced by the Federal Government in 2024.
According to the company, presidential directives provided fiscal incentives for non-associated gas projects, simplified contracting processes and helped reduce development costs.
These measures were designed to improve the economics of gas projects and provide investors with greater certainty when committing capital to developments that can require significant upfront spending.
The company said the successful FID demonstrates that the reforms are helping to create conditions capable of attracting fresh investment into Nigeria’s upstream industry.
NNPC sees confidence in gas sector
NNPC Group Chief Executive Officer Bayo Ojulari described the project as a major vote of confidence in Nigeria’s gas industry.
He said the decision reflects the impact of reforms aimed at creating more competitive investment terms and a more predictable operating environment for energy companies.
The company said the project also demonstrates the potential benefits of collaboration between Nigerian indigenous operators, international oil companies and domestic financial institutions.
AMNI International’s partnership with TotalEnergies brings together an indigenous Nigerian operator and a major international energy company for the offshore development.
NNPC said the partnership model, supported by Nigerian capital, could serve as a template for other upstream projects in the country.
The company argued that greater cooperation between local operators, international investors and financial institutions could help unlock more of Nigeria’s oil and gas resources.
Beyond supplying feedgas to the NLNG expansion, the project is expected to contribute to Nigeria’s broader efforts to increase gas production and use the resource as a driver of industrial development.
More reliable gas supplies can support electricity generation, manufacturing, petrochemicals and other gas-dependent industries.
NNPC said it remains committed to working with the government, regulators and private-sector partners to maintain investment momentum in the sector.
The company added that developing Nigeria’s gas resources could contribute to industrialisation, employment and long-term economic growth.
The Ima Gas FID comes as Nigeria seeks to attract more investment into its upstream sector and increase the contribution of natural gas to the economy.
The $800 million commitment is therefore significant not only for the companies involved but also for efforts to develop additional gas production capacity.
If the project delivers its expected peak output of 300 million standard cubic feet per day, it will provide an additional source of gas for Nigeria’s growing LNG and domestic energy needs.
