A new report released by Global Data has indicated that downstream projects will top upcoming oil and gas investment in Nigeria by 2026.
The report said that more than 100 oil and gas projects will initiate operations in Nigeria in the coming four years accounting for over 24 per cent of the estimated total projects starting during that time.
According to Global Data, a data and analytics firm Africa Oil and Gas Projects Analytics and forecast by project type sector, countries development stage, capacitor and cost from 2022 to 2026, disclosed that of the 109 projects expected to commence operations in Nigeria, petrochemical will account for 14, upstream 26, midstream 31 and downstream refineries will have the highest amount with 38.
An oil and gas analyst with Global Data, Teja Poppula said: “Nigeria is primarily investing in oil and gas production storage projects during the next five years.”
He said these forthcoming projects would increase Nigeria’s economy and help the country to change from an importer to an exporter of refined products, particularly to neighbouring countries.
The oil expert averred that amid the upcoming projects being started in Nigeria, Lagos is a crucial project with a total capacity of almost 650 thousand barrels daily expected to initiate in 2022, it will be the most significant individual refinery in the whole of Africa and it is presently in the stage of construction.
Poppula further added that Midstream projects account for about 28 per cent of oil and gas processing projects compressing the majority of upcoming midstream projects with ANOU-Seplat, ANOH-SPDC and Brass, being the key projects with capacity of over 300 million cubic feet per day each.
The nation is also making major investment in natural gas processing pipelines as well as liquefied projects to decrease its dependence on oil, which presently drives the majority of revenue in the country.
He said that through this, Nigeria will be accounting for 24 per cent of oil and gas projects by 2026 on the Africa continent.