Nigeria to Account for 24% of Oil Projects Starting Up in Africa by 2026 – Report
GlobalData, a data and analytics company, has said predicted that Nigeria would have more than 100 oil and gas projects coming up in the next four years.
GlobalData Plc is a data analytics and consulting company, headquartered in the UK. The company is listed on the London Stock Exchange, was previously called Progressive Digital Media and before that, the TMN Group.
In its GlobalData’s report, ‘Africa Oil and Gas Projects Analytics and Forecast by Project Type, Sector, Countries, Development Stage, Capacity and Cost, 2022-2026’, the analytical firm reveals that out of the 109 projects expected to commence operation during the period 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,” World Oil quoted 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, the 650,000 barrels per day, Dangote is a key project. It is expected to start operations later this year.
World Oil noted that the Dangote Refinery project is the largest individual refinery in Africa, and it is currently in the construction stage.
The report said 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.
According to him, 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.