The Presidency has officially launched a $550 million upstream gas project between the Nigerian National Petroleum Corporation Limited and TotalEnergies, focused on developing the Ubeta field.
This announcement was made by the Special Adviser to the President on Energy, Olu Verheijen during the inaugural US-Nigeria Strategic Energy Dialogue hosted by the US State Department in Washington, DC.
At a luncheon held as part of the dialogue, Verheijen highlighted that the project is expected to deliver 350 million standard cubic feet of gas per day upon becoming operational.
A statement on the event signed by the Stakeholder Manager, 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 outlined that major energy reforms introduced by President Bola Tinubu since June 2023 are designed to enhance energy security, attract investments, and strengthen partnerships with key stakeholders, including the US government.
These reforms are expected to boost the viability of Nigeria’s gas-to-power value chain.
Key initiatives include improving cash flows in electricity distribution through smart metering, settling outstanding debts to investors, and reducing carbon emissions from gas production.
Verheijen detailed that President Bola Tinubu has introduced five new executive orders to support the reform efforts.
These orders aim to provide fiscal incentives for investment, streamline the process for finalizing and implementing contracts, and reduce costs associated with developing and expanding gas infrastructure.
The directives are expected to unlock up to $2.5 billion in new oil and gas investments in Nigeria.
She also acknowledged the crucial support from financial and technical partners such as the US government, the World Bank, and the African Development Bank, which are helping to expand electricity access and reliability through both grid and off-grid solutions.
She expressed optimism about Nigeria’s energy sector prospects, particularly with a renewed emphasis on gas as a transition fuel to meet the country’s Paris climate agreement commitments.
“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.
“Nigeria seeks to create a robust regulatory framework and attract new investments for the production of gas for power, transportation and clean cooking.
“I cannot overstate the importance of our longstanding relationship with the US and this inaugural dialogue.
“The goal of this dialogue 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,” she said.
In his remarks, US Assistant Secretary of the State Department’s Bureau of Energy Resources, Geoffrey
Pyatt described the dialogue as both timely and strategic.
“The inaugural U.S.-Nigeria Strategic Energy Dialogue has set the stage for strengthened energy collaboration between the United States and Nigeria.
“Together, we’re advancing shared energy security, decarbonisation, and economic growth goals,” he said.
The Dialogue featured the launch of the Clean Energy Alliance of Nigeria by the U.S. State Department. This new initiative aims to mobilize stakeholders and promote investment in clean energy projects within Nigeria.
