Africa: Report – Nigeria to Account for 23% of Oil, Gas Projects in Africa By 2025

Nigeria is expected to have about 100 oil and gas projects commencing operations across the value chain between 2021 and 2025, accounting for 23 per cent of all total fresh projects in Africa, a new report has disclosed.
According to the report by GlobalData, a data and analytics company, new-build projects would dominate the industry and account for around 90 per cent of the total projects commencing operations across the value chain in Nigeria.
In the report titled: ‘Africa Oil and Gas Projects Outlook to 2025 – Development Stage, Capacity, Capex and Contractor Details of All New Build and Expansion Projects,’ the company revealed that of the 100 projects expected to commence operations during the period, petrochemicals will have the highest count with 28 projects, followed by upstream (25), refinery (24) and midstream (23).

“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,” the report said.
On refineries, it stated that the 650,000 barrel per day Dangote refinery in Lagos was a key project expected to start operations in 2022, noting that once the project begins operation, it could become the largest oil refinery in Africa.
“Among the upcoming petrochemical projects in Nigeria by 2025, Brass Fertiliser & Petrochemical Company, Brass Methanol Plant are a key projects with a capacity of 1.70 million tonnes per annum (mtpa).

“The new build plant has already received approval and is expected to start operations by 2025,” it stated.

In the upstream (fields) segment, GlobalData stated that it expects 25 projects to start operations in Nigeria during 2021 to 2025.
Some of the notable projects, it said, include Bonga North and Okpokunou Cluster Development, with Bonga North being a deepwater conventional oilfield presently in FEED stage and is expected to commence operations by 2025, while Cluster Development is an onshore conventional gas field presently at the feasibility stage and is expected to start operations by 2024.
According to the report, midstream projects will account for around 23 per cent of all oil and gas projects in Nigeria by 2025.
“Gas processing projects account for around 39 per cent of all upcoming midstream projects. ANOH-Seplat is one of the key projects with a capacity of 300 million cubic feet per day (mmcfd). The project is in currently in the construction stage and is expected to start operations in 2022.

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“In LNG, Nigeria expansion is a key liquefaction project with a capacity of 7.60 mtpa and a project cost of US$7bn. The liquefaction project has been approved and is expected to start operations in 2025,” it stated.
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, recently stated that Africa’s largest crude oil producer and exporter, expects to end its crude-for-fuel swap deals by 2023 when its refining capacity is set to increase with state refineries revamped and a new refinery built.
Nigerian refineries, which are in need of refurbishment, will be fully revamped and running by 2023, even as the contract for the Port Harcourt refinery has been awarded for $1.5 billion.
“The outlook for Nigeria’s downstream sector looks bright with attractive market conditions, large market, significant crude distillation capacity additions from various refinery projects, improvements of the distribution network & the use of natural gas,” Kyari recently assured.

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