MORGANABLE BUSINESS/ ENERGY & INDUSTRY
Nigeria’s oil and gas industry has recorded a milestone after TotalEnergies and Nigerian energy company AMNI International reached a Final Investment Decision (FID) on the $800 million Ima Gas Project.
Akure —
Nigeria’s oil and gas industry has recorded a milestone after TotalEnergies and Nigerian energy company AMNI International reached a Final Investment Decision (FID) on the $800 million Ima Gas Project.
The decision will move the long-delayed offshore gas development into its next phase.
The Ima gas field lies across Oil Mining Leases (OMLs) 112 and 117 in shallow waters near Bonny Island, Rivers State. Now, the investment decision provides a clear path toward development, with production expected to begin in 2028.
TotalEnergies said the field is expected to reach a production plateau of 350 million cubic feet of gas per day. Reuters also reported the same expected production level.
The project will be operated by TotalEnergies, which holds a 40 per cent interest, while AMNI holds 60 per cent.
AMNI is a Nigerian independent exploration and production company, and its majority participation gives the project a strong local ownership component.
According to TotalEnergies, the development will use a single platform connected by a 22-kilometre pipeline to Nigeria LNG.
Once production starts, the Ima field is expected to supply about one-third of the gas required for the ongoing Train 7 expansion of the Nigeria LNG plant.
The expansion is designed to raise Nigeria LNG’s liquefaction capacity from 22 million tonnes per year to 30 million tonnes per year.
That connection makes the project important beyond the upstream oil and gas sector.
More gas supply can support LNG production and exports while also creating opportunities across the wider energy value chain.
Increased gas availability can support industries that rely on gas as fuel or feedstock, including power generation, fertiliser production and petrochemicals.
The project also has a significant financing and local participation component. Information released by the Federal Government said Nigerian financial institutions have arranged 77 per cent of the project’s financing.
Furthermore, about 60 per cent of the workforce during the development phase is expected to come from host communities, including Bonny, Finima and Andoni in Rivers State.
This could create opportunities for workers, contractors and businesses in those communities.
TotalEnergies said all key contractors for the development will be local companies.
This emphasis on Nigerian participation could allow more businesses to benefit from the project through engineering, construction, logistics, technical services and other supporting activities.
It may also give local professionals more opportunities to gain experience in a major offshore gas development.
The project is also being presented as a lower-cost and lower-emissions development.
TotalEnergies said the Ima field will use a simplified platform design and receive electricity from shore. The project will also operate without routine flaring and will use permanent methane detection and monitoring.
The Federal Government has linked the investment decision to efforts to improve the investment environment in Nigeria’s oil and gas industry.
Government reforms have focused on improving fiscal conditions, reducing costs and shortening contracting timelines.
President Bola Tinubu welcomed the FID and said the development showed the importance of creating a predictable environment for investors.
His administration has introduced directives and incentives aimed at encouraging investment in gas projects, particularly developments that had remained inactive for long periods.
The Ima decision is being cited by government officials as one result of those measures.
However, the project’s significance also rests on the fact that the gas resource has remained undeveloped for decades. Discovering a resource does not automatically translate into economic value.
Companies still need to secure financing, complete engineering work, obtain approvals, build infrastructure and establish reliable routes to market.
The FID marks the point at which the partners have committed to moving ahead with the development.
The Ima project is the fourth major gas project to reach FID since the current administration took office, according to the Federal Government.
It follows the Iseni, Ubeta and HI projects. Together, these developments form part of efforts to increase investment in Nigeria’s gas sector and move more resources from discovery and reserves into actual production.
For Nigeria, the timing is significant because gas remains central to the country’s plans for energy security and industrial development.
The country has substantial natural gas resources, but a considerable portion has historically remained undeveloped.
Bringing new projects online could increase domestic supply while also supporting exports and generating revenue.
The Ima project could also strengthen the supply base for Nigeria LNG at a time when the company is expanding its processing capacity.
By supplying about one-third of the gas required for Train 7, the field is expected to play a direct role in the expansion once production begins.
This could help connect upstream production with downstream LNG processing and export activities.
Beyond government revenue and exports, the project could affect people and businesses in host communities.
Local employment, procurement and contracting can provide income opportunities during construction and development.
The expected participation of host-community workers is particularly relevant because energy projects can have wider economic effects when local businesses and workers participate in their supply chains.
Still, the benefits will depend on successful execution. The partners must complete the planned infrastructure, maintain project financing and meet the expected 2028 start-up target.
They must also manage environmental, safety and community considerations throughout development and operations.
The development highlights the importance of infrastructure in turning gas reserves into usable energy.
A gas field needs transportation links before its output can reach customers. The planned pipeline to Nigeria LNG will provide a route to the facility.
For industry, reliable gas supply can support manufacturers and businesses that depend on energy and industrial feedstock. Gas also serves as an input for fertiliser and petrochemical production.
The project shows how long development timelines can shape Nigeria’s energy sector. The Ima discovery dates back to 1973, yet commercial development is now moving forward.
As work progresses, the partners will need to complete construction, maintain safety standards and coordinate with host communities while working toward the 2028 start.
