A data and analytics firm, Global Data, has projected an increasing revenue in Nigeria by 2025 as the country would account for 23 percent of new projects in the oil and gas industry.
The firm said these projects within the next five years, would boost the revenue of the country.
In the report entitled: ‘Africa oil and gas projects outlook to 2025 – Development stage, capacity, capex and contractor details of all new build and expansion projects,’ the firm revealed that of the 100 projects expected to commence operations during the period.
It noted that the petrochemical projects will hold the highest share of new startup projects in the country through 2025, with 28 projects, followed by 25 expected upstream oil and gas projects, 24 refinery projects, and 23 midstream projects.
In the upstream, some of the notable projects include the Deepwater Bonga North oilfield and the Onshore conventional gas Okpokunou Cluster Development.
Bonga North is in its Front End Engineering Design (FEED) stage and is expected to start operations by 2025. Cluster Development is at a feasibility stage and is expected to begin operations by 2024, the GlobalData report said.
It, however, maintained that projects in the country’s refining sector will also be watched as the biggest African economy is eager to reduce its reliance on fuel imports, revamp its old refineries, and build new ones.
The 650,000 barrel per day Lagos refinery is a key project expected to start operations in 2022 and become the largest oil refinery in Africa.
Teja Pappoppula, Oil & Gas Analyst at GlobalData, said, “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 neighboring countries.
Among the upcoming petrochemical projects are the 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. Gas processing projects account for around 39 percent of 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 the construction stage and is expected to start operations in 2022. In LNG, Nigeria’s expansion is a key liquefaction project with a capacity of 7.60 mtpa and a project cost of $7 billion. The liquefaction project has been approved and is expected to start operations in 2025,” it stated.