GlobalData: Nigeria to account for 24% of oil and gas projects starting up in Africa by 2026
More than 100 oil and gas projects should commence operations in Nigeria during the next four years, accounting for more than 24% of the predicted total projects starts during that time, predicts GlobalData, a data and analytics company.
GlobalData’s report, 'Africa Oil and Gas Projects Analytics and Forecast by Project Type, Sector, Countries, Development Stage, Capacity and Cost, 2022-2026', reveals that out of the 109 projects expected to commence operations in Nigeria, petrochemicals would account for 14, upstream (fields) 26, midstream 31 and downstream (refineries) would have the highest amount with 38.
“Nigeria is mainly investing in oil & gas production, storage and refinery projects over the next five years,” said Teja Pappoppula, oil & gas analyst at GlobalData. “These upcoming projects would boost Nigeria's economy and help the country to transform from an importer to an exporter of refined products, especially to neighboring countries.”
Among the upcoming refinery projects in Nigeria, Lagos I is a key project with a total capacity of 650 thousand barrels per day expected to start operations in 2022. It is the largest individual refinery in Africa, and it is currently in the construction stage.
“Midstream projects account for around 28% of all oil and gas projects in Nigeria by 2026. Gas processing projects constitute the bulk of upcoming midstream projects with ANOH-Seplat, ANOH-SPDC and Brass being the key projects with a capacity of 300 million cubic feet per day each,” Pappoppula added. “The country is also making significant investments in natural gas processing, pipelines and liquefaction projects to reduce its dependence on oil, which currently drives the majority of revenue in the country.”