TotalEnergies and AMNI greenlight Ima gas project to supply Nigeria LNG

French energy giant TotalEnergies and its Nigerian partner AMNI have taken the final investment decision (FID) for the development of the Ima gas field, straddling OML 112 and 117 licenses off Nigeria's coast. According to gCaptain, the Ima gas field, located in shallow waters near Bonny Island, will be developed with a single platform connected to Nigeria LNG (15%, TotalEnergies) through a 22 km pipeline.

Project Details and Timeline

The project is expected to commence production in 2028. Once operational, the Ima field will supply approximately one-third of the gas needed for the ongoing Nigeria LNG Train 7 expansion. This expansion aims to increase liquefaction plant capacity from 22 million tons per annum (Mtpa) to 30 Mtpa.

The FID marks a significant milestone in TotalEnergies' strategy to develop low-cost and low-emissions gas resources, following the Nigerian government's incentives for non-associated gas developments. As part of their commitment, all key contractors involved are local companies from Nigeria, contributing to the country’s economic growth and community development.

Environmental and Community Benefits

The Ima project is characterized as a low-cost and low-emissions initiative with several environmental benefits. The platform design is simplified, utilizing electric power supply from shore, ensuring no flaring. Additionally, permanent methane detection and monitoring systems are in place to enhance operational safety.

According to Hellenic Shipping News, the project is expected to source around 60% of its workforce from local communities, fostering job creation and sustainable development in the region. Nicolas Terraz, President Exploration & Production at TotalEnergies, highlighted the importance of these initiatives: "After the Ubeta project sanctioned in 2024 and expected to start up next year, Ima demonstrates again our ability to unlock new low-cost and low-emissions gas resources, following the incentives introduced by the Nigerian government for non-associated gas developments."

Strategic Implications

The launch of the Ima project underlines TotalEnergies’ commitment to expanding its offshore operations in Nigeria while aligning with global efforts towards reducing carbon emissions. The increased capacity from the expanded liquefaction plant will bolster Nigeria’s LNG export capabilities, making it a more competitive player in the global energy market.

This development also highlights the growing importance of non-associated gas fields in meeting increasing demand for cleaner fuels without resorting to flaring, a common practice in conventional oil and gas operations. The Ima project sets a precedent for other potential gas field developments in Nigeria, potentially leading to further FIDs as more companies follow TotalEnergies’ lead.

What this means for operators

The increased supply of cleaner LNG from the expanded Nigeria LNG facility will have significant implications for global shipping and logistics operators. With improved availability of low-emission fuel options, ship operators can expect enhanced flexibility in their bunkering strategies, potentially leading to reduced operational costs as they switch to more efficient and environmentally friendly fuels.

Additionally, the successful implementation of such projects could spur further investments in infrastructure that supports the global LNG market. This includes newbuildings designed to accommodate larger volumes of LNG or retrofitting existing vessels with necessary equipment for handling and storing this fuel type. As a result, ship operators may need to plan accordingly to ensure their fleets remain competitive in an evolving energy landscape.