THE Presidency has announced the take-off of the $550m upstream gas project between the Nigerian National Petroleum Corporation Limited, NNPCL, and TotalEnergies on the development of the Ubeta field.
According to media reports, the Special Adviser to the President on Energy, Olu Verheijen, disclosed this at an inaugural US-Nigeria Strategic Energy Dialogue, hosted by the US State Department, in Washington, DC.
Speaking at a luncheon organised as part of the inaugural dialogue, Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.
A statement on the event signed by the Stakeholder Manager of the Office of the Special Adviser to the President on Energy, Morenike Adewunmi, was made available to the News Agency of Nigeria in Abuja on Tuesday.
Verheijen told the gathering that major energy reforms introduced by President Bola Tinubu since June 2023 focused on improving energy security, attracting investments, and deepening collaboration with key partners, including the US Government. She said the key reforms had improved the viability of the gas-to-power value chain of the country
The reforms according to her, included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors and to reduce carbon emissions from gas production.
She added 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, noting that the directives also aimed to immediately unlock up to $2.5bn in new oil and gas investments in the country.
She acknowledged the support of financing and technical partners like the US Government, the World Bank, and the African Development Bank towards expanding electricity access and reliability through grid and off-grid solutions.
Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the 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,” she said.
Speaking on the Dialogue, Verheijen recalled it was established in June 2023 to create a platform for the US and Nigerian Governments and private sector to deepen bilateral cooperation and advance the implementation of shared energy and climate action ambitions.
The Ubeta field, discovered in 1964, is located Northwest of Port Harcourt, Rivers State.