The Nigerian government has announced the take-off of the $550 million upstream gas project between the Nigerian National Petroleum Corporation Ltd. (NNPCL) and TotalEnergies on development of the Ubeta field, which would deliver 350 million standard cubic feet of gas per day when operational.
The Special Adviser to the Nigerian President on Energy, Olu Verheijen, stated this during her remarks on Thursday, September 12, at a luncheon organised as part of the inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.
Nigeria is reputed to have the largest proven natural gas reserves in Africa, and the ninth largest globally.
Verheijen added that major energy reforms introduced by President Bola Tinubu administration since June 2023 have focused on improving energy security, attracting investments and deepening collaboration with key foreign partners, as the Nigerian government seeks to bridge the energy gap for at least 100 million Nigerians.
According to a statement by the Office of the Special Adviser to the President on Energy, Verheijen highlighted the importance of Nigeria’s longstanding relationship with the US, stating that, “The goal of this dialogue is to for us to jointly proffer solutions that will close the energy access gap for close to 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,” added Verheijen, who was part of the Nigerian delegation led by the Minister of State for Petroleum Resources, Ekperikpe Ekpo.
Verheijen highlighted key reforms that the Nigerian government has launched to improve the viability of the gas-to-power value chain since President Bola Tinubu assumed office. These include initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and reduce carbon emissions from gas production.
She further stated that to support the reform efforts, the president issued five new executive orders aimed at providing fiscal incentives for investment and reducing the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.
The directives aim to immediately unlock up to $2.5 billion in new oil and gas investments in the country.
The Special Adviser further emphasised the bright prospects for Nigeria’s energy sector, particularly with the government’s renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.
“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,” said Verheijen.
She also acknowledged the support of financing and technical partners like the US government, the World Bank and the African Development Bank (AfDB) towards Nigeria’s ambitious goals to expand electricity access and reliability through grid and off-grid solutions.
In his remarks, the Assistant Secretary of State, Bureau of Energy Resources (ENR), US State Department, Geoffrey R. Pyatt, said, “The inaugural U.S.-Nigeria Strategic Energy Dialogue sets the stage for strengthened energy collaboration between the United States and Nigeria. Together, we’re advancing shared energy security, decarbonization, and economic growth goals.”
The US delegation included representatives from the Bureau of African Affairs, USAID, the US Department of Energy, the Development Finance Corporation (DFC), the US Trade and Development Agency (USTDA), and the Export-Import Bank (EXIM).
The Nigerian delegation also included senior government officials from the Ministry of Power, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Content Development and Monitoring Board, NNPC Limited, among others.
A new Nigeria-focused initiative, the Clean Energy Alliance of Nigeria (CLEAN), supported by the US State Department, to mobilize stakeholders to support and promote investment in clean energy in Nigeria, was also launched at the Dialogue focused on deepening US-Nigeria bilateral cooperation on improving energy security; and advancing implementation of shared energy and climate action ambitions.
