Nigeria Calls for Deepwater Gas Investment, Infrastructure Development

Nigeria, boasting an estimated 203 trillion cubic feet of natural gas reserves, is embarking on a mission to harness its gas wealth and emerge as a key LNG exporter to global markets. With flagship projects like the $5-billion Nigeria LNG Train 7 expansion underway to increase processing capacity by 35%, the country aims to bolster gas exports, particularly to gas-hungry markets like Europe. However, to expedite exports, substantial investments in deepwater gas projects and infrastructure are imperative.

The upcoming Invest in African Energy 2024 forum, slated for May 14-15 in Paris, will spotlight Nigerian and African investment opportunities in deepwater exploration, gas monetization, and midstream infrastructure, as the continent enters a new phase of development.

**IOCs Ramp Up Offshore Investment**

Nigeria is beckoning upstream investment, with a keen emphasis on deep offshore ventures, prompting plans for a 2024 licensing round to attract fresh explorers. Notable players like Shell have heeded the call, committing to deepen investments in deepwater with a $1 billion infusion over the next decade to develop Nigeria’s gas resources. TotalEnergies recently commenced production at the Akpo West field offshore Nigeria, with Chevron also intensifying its deepwater investments through seismic data acquisition and field expansion initiatives.

**Addressing Infrastructure Gaps**

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In tandem with gas monetization efforts, Nigeria is striving to curb gas flaring, which reached around 275 million cubic feet per day in 2023. The country eyes gas-to-power infrastructure as a solution, tapping into its flared gas potential to generate significant power output. The Nigerian Upstream Petroleum Regulatory Commission has greenlit 48 flaring gas sites for commercialization to bolster the domestic gas market and curtail upstream emissions.

Major pipeline projects like the Nigeria-Morocco pipeline and Ajaokuta-Kaduna-Kano (AKK) pipeline are also pivotal in Nigeria’s gas infrastructure landscape. The Nigeria-Morocco pipeline, capable of delivering 3 billion cubic feet per day, is poised to link Nigeria to the European market, while the AKK pipeline, set to transport up to 2 billion cubic feet of gas per day, targets enhancing power generation, industrialization, and job creation within Nigeria.

With a projected gas production surge and ambitious pipeline ventures on the horizon, Nigeria beckons investors and stakeholders to partake in its deepwater gas evolution and infrastructure journey.

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