The Federal Government has recorded another milestone with the Final Investment Decision (FID) on the $800 million Ima Gas Project.
The feat will unlock Nigeria’s vast gas resources for investment, industrialisation, job creation and economic prosperity.
Like the Iseni, Ubeta and HI FIDs before it, the Ima Gas Project marks the fourth major gas project to reach Final Investment Decision since President Bola Ahmed Tinubu assumed office.
Developed by Nigerian independent AMNI International in partnership with TotalEnergies, the Ima Gas Project is expected to produce about 300 million standard cubic feet of gas per day at peak.
The Ima gas resource, located offshore in OMLs 112 and 117, was discovered in 1973 but remained undeveloped for more than five decades. Despite its significant reserves and potential as a source of feed gas for Nigeria LNG Limited, the resource remained underground and unable to contribute meaningfully to Nigeria’s economy.
A statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed that President Tinubu was excited about the Ima Gas FID, which he noted was a demonstration of his administration’s resolve to convert the country’s vast gas resources into productive projects that create jobs, generate revenue and expand economic opportunities for Nigerians.
President Tinubu said, “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. Our responsibility has been to create the conditions that turn Nigeria’s natural resources into productive investments and economic opportunities.
“The Final Investment Decision on Ima demonstrates what is possible when we provide investors with a competitive, predictable and enabling environment. We are determined to unlock more of Nigeria’s gas resources to power our industries, expand our exports, create jobs and build lasting prosperity for our people.”
Findings revealed that the FID was a positive fallout of 2024 directives by President Tinubu to the Special Adviser on Energy, Ms Olu Arowolo Verheijen, and her team to develop a framework to improve fiscal competitiveness, shorten contracting timelines and reduce costs.
Speaking on the $800 million Ima Gas Project FID, the Special Adviser to the President on Energy declared that “the story of Ima is ultimately the story of what our reforms are designed to achieve. 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.”
“A gas discovery made in 1973 can only contribute to prosperity when somebody invests the capital to develop it, banks finance it, contractors build it, Nigerians work on it, and the gas is ultimately put to productive use. That is the transition we are seeing today.”
The statement maintained that “the project also demonstrates the growing depth of Nigerian participation across the energy value chain. AMNI International, a Nigerian-owned exploration and production company, holds a majority interest in the asset, illustrating the increasing capacity of indigenous companies to participate in and lead increasingly significant developments in Nigeria’s upstream sector.
“Nigerian financial institutions have arranged 77 per cent of the project’s financing, with around 60 per cent of the project workforce expected to come from host communities, including Bonny, Finima and Andoni in Rivers State.
“For decades, Nigeria has had one of Africa’s largest gas resource bases, yet significant volumes have remained undeveloped.”
The statement assured Nigerians, particularly upstream oil and gas industry players, that the Tinubu administration would continue to create an enabling fiscal framework that “focuses not simply on producing more gas, but on putting that gas to work: supporting LNG exports and foreign exchange earnings, providing feedstock for industry, enabling fertiliser and petrochemical production, supporting a more reliable power supply, and creating new opportunities for Nigerian businesses and workers.”
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