By JKNewsMedia
NIGERIA’s GAS sector has recorded another major investment milestone with the $800 million Final Investment Decision (FID) on the IMA Gas Project (IGP), expected to unlock a resource discovered more than five decades ago.
JKNewsMedia.com reports that President Tinubu said the decision demonstrated what could be achieved by providing investors with a competitive, predictable and enabling environment.
Developed by Nigerian Independent AMNI International in partnership with TotalEnergies, the offshore project in OMLs 112 and 117 is expected to produce about 300 million standard cubic feet of gas per day at peak.
The IMA gas resource was discovered in 1973 but remained undeveloped for more than 50 years despite its significant reserves and potential to provide feedgas for Nigeria LNG Limited. The FID, announced on September 23, marks a major step towards developing the resource.
The project is the fourth major gas project to reach FID since President Bola Tinubu assumed office, following the Iseni, Ubeta and HI FIDs.
Tinubu said the decision demonstrated what could be achieved by providing investors with a competitive, predictable and enabling environment.
“For more than fifty years, the gas beneath Ima remained a resource with enormous potential, but potential alone does not create jobs, finance businesses or improve the lives of our people,” he said.
“Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.”
The President said the administration would continue efforts to unlock more of Nigeria’s gas resources to support industries, expand exports, create jobs and build economic opportunities.
Since assuming office, Tinubu has prioritised reforms aimed at reversing years of underinvestment in the oil and gas industry.
The administration said the 2021 Petroleum Industry Act provided an important foundation, while several undeveloped projects still required improved fiscal and commercial conditions to become viable.
In 2024, the President issued a series of Presidential Directives developed by the team led by the Special Adviser to the President on Energy.
The directives sought to improve fiscal competitiveness, shorten contracting timelines and reduce costs.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the Ima project reflected the purpose of the reforms.
“Nigeria has never lacked resources. The challenge has been creating the commercial and investment conditions required to move those resources from beneath the ground into projects that employ Nigerians, create opportunities for Nigerian businesses, generate revenues and support economic growth,” she said.
The project also highlights Nigerian participation across the energy value chain. AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset.
Nigerian financial institutions have arranged 77 per cent of the project’s financing, while about 60 per cent of its workforce is expected to come from host communities, including Bonny, Finima and Andoni in Rivers State.
The administration said its gas strategy focuses on putting Nigeria’s gas resources to productive use by supporting LNG exports and foreign exchange earnings, providing feedstock for industry, enabling fertiliser and petrochemical production, supporting a more reliable power supply and creating opportunities for Nigerian businesses and workers.
“Natural resources have value only when they are converted into opportunities for our people,” Tinubu said. “Our goal is to ensure that Nigeria’s gas powers Nigerian prosperity.”
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