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Nigeria to account for 23% of upcoming oil and gas projects in Africa by 2025
Nigeria is expected to have 100 oil and gas projects commencing operations across the value chain between 2021 and 2025, accounting for 23% of total project starts in Africa, reports GlobalData. Newbuild projects dominate the upcoming developments, accounting for around 90% of the total projects identified.
Petrochemicals developments are expected to account for 28 of the 100 projects, followed by 25 upstream, 24 refinery and 23 midstream.
Teja Pappoppula, Oil & Gas Analyst at GlobalData, comments: ‘Nigeria is betting on several refinery and petrochemicals projects to meet its growing domestic demand and reduce its reliance on imports. The projects also have potential to transform Nigeria as an exporter of refined products to neighbouring countries.’
Start-ups include the 650,000 b/d Lagos I refinery project, which is expected to be commissioned in 2022 and could become the largest oil refinery in Africa. Upcoming petrochemical projects in Nigeria include the Brass methanol plant, which will have a capacity of 1.7mn t/y and is due onstream by 2025.
Notable upstream projects include Bonga North, a deepwater conventional oil field currently in the front-end engineering and design (FEED) stage and due onstream by 2025, and the Okpokunou cluster development, an onshore conventional gas field currently at the feasibility stage and expected to start operations by 2024.
Midstream projects account for around 23% of all oil and gas project start-ups in Nigeria by 2025. Gas processing projects, which account for around 39% of all upcoming midstream developments, include the 300mn cf/d ANOH-Seplat project, which is expected to be commissioned in 2022. Meanwhile, Nigeria Expansion is a key liquefaction project with a capacity of 7.60mn t/y and a project cost of $7bn. The project has been approved and is expected to start operations in 2025.
Figure 1: Upcoming oil and gas projects in Nigeria, in 2021–2025