French energy giant TotalEnergies has announced plans to invest $750 million in a new Liquefied Natural Gas (LNG) project in Nigeria by 2025. The announcement was made by the company’s Senior Vice President for Africa, Mike Sangster, during the France-Nigeria Business Forum held in Paris.
Focus on the Ima Gas Project
The investment will be directed towards the Ima gas project, a shallow water initiative aimed at increasing gas supply to TotalEnergies‘ existing LNG facility. Sangster explained that this project will also contribute to reviving Nigeria’s hydrocarbon production, which has faced challenges in recent years.
“We have a dry gas project called Ima, and we are looking to sanction it next year for $750 million,” Sangster said.
Strengthening Nigeria’s Gas Infrastructure
Earlier this year, TotalEnergies launched the Ubeta onshore gas field, a $500 million project with a daily output capacity of 300 million cubic feet of LNG. The company’s investments align with Nigeria’s push to expand local gas production and reduce reliance on imports.
Regulatory Reforms and Incentives
Sangster highlighted the need for relaxed local content regulations to attract international contractors and boost competition. He praised recent reforms by the Nigerian government but noted that more work is needed to simplify regulations and accelerate processes.
“These changes have motivated us to renew investments in Nigeria and focus on increasing production,” he added.
Government Support for Energy Investments
Since taking office in May 2023, President Bola Tinubu has prioritised reforms in Nigeria’s oil and gas sector. His administration aims to attract $10 billion in investments for deep-water gas exploration through tax incentives and regulatory changes. These efforts are part of a broader strategy to revitalise the industry and position Nigeria as a key player in the global energy market.
As TotalEnergies prepares to invest in the Ima gas project, industry stakeholders anticipate that this initiative will boost Nigeria’s energy sector, create jobs, and enhance the country’s LNG production capabilities.
