President Bola Tinubu’s government has announced the take-off of the $550 million upstream gas project between the Nigerian National Petroleum Corporation Ltd and TotalEnergies on the development of the Ubeta field.

Olu Verheijen, Mr Tinubu’s special adviser on energy, disclosed this at an inaugural US-Nigeria Strategic Energy Dialogue hosted by the U.S. State Department in Washington.

Speaking at a luncheon organised as part of the inaugural dialogue, Verheijen said the upstream gas project would deliver 350 million standard cubic feet of gas per day when operational.

According to a statement on Tuesday, Ms Verheijen told the gathering that major energy reforms introduced by Mr Tinubu since June 2023 focused on improving energy security, attracting investments and deepening collaboration with key partners, including the U.S. government.

She said the key reforms had improved the viability of the country’s gas-to-power value chain.

According to her, the reforms included initiatives to improve cash flows in electricity distribution through smart metering and the payment of outstanding debts owed investors, as well as to reduce carbon emissions from gas production.

She added that, to support the reform efforts, the president issued five new executive orders to provide fiscal incentives for investment and reduce the cost and time of finalising and implementing contracts to develop and expand gas infrastructure.

The presidential aide said the directives also aimed to unlock up to $2.5 billion in new oil and gas investments in the country immediately. 

She acknowledged the support of financing and technical partners like the U.S. government, the World Bank, and the African Development Bank in expanding electricity access and reliability through grid and off-grid solutions.

Ms Verheijen affirmed her optimism about the bright prospects for Nigeria’s energy sector, especially with the renewed focus on gas as a transition fuel in the race to meet the country’s commitments to the Paris climate agreement.

(NAN)