Refineries Tops Nigeria’s Upcoming 109 Oil And Gas Projects By 2026

Nigeria Set To Start-up 100 Oil & Gas Projects By 2025 | OilPrice.com

Richard Ginika Izuora

A new report released by GlobalData, has indicated that downstream projects will top upcoming oil and gas investments in Nigeria by 2026.

The report said that more than 100 oil and gas projects will initiate operations in Nigeria in the coming four years, accounting for over 24 per cent of the estimated total projects starting during that time.

According to GlobalData, a data and analytics firm, Africa Oil and Gas Projects Analytics and Forecast by Project Type, Sector, Countries, Development Stage, Capacity and Cost, 2022-2026′, discloses that out of the 109 projects that are expected to start operations in Nigeria, petrochemicals will be accounting for 14, upstream (fields) 26, midstream 31 and downstream (refineries) will be having the highest amount with 38.

An oil and gas analyst at the GlobalData, Teja Pappoppula, said, “Nigeria is primarily investing in oil & gas production, storage and refinery projects during the next five years. These forthcoming projects would increase Nigeria’s economy and help the country to change from an importer to an exporter of refined products, particularly to neighbouring countries.”

Amid the upcoming refinery projects being started in Nigeria, Lagos is a crucial project with a total capacity of almost 650 thousand barrels each day expected to initiate in 2022. It will be the most significant individual refinery in the whole of Africa, and it is presently in the stage of construction.

Pappoppula further added, “Midstream projects account for about 28% of all oil and gas projects in Nigeria by 2026. Gas processing projects comprise the majority of upcoming midstream projects with ANOH-Seplat, ANOH-SPDC and Brass being the key projects with a capacity of over 300 million cubic feet per day each.”

The nation is also making major investments in natural gas processing, pipelines as well as liquefaction projects to decrease its dependence on oil, which presently drives the majority of revenue in the country.

Through this, Nigeria will be accounting for 24 per cent of oil and gas projects by 2026.

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