Nigeria to spend $21.1 billion on oil, gas pipelines by 2025
NIGERIAN NA TIONAL PE TROLEUM CORPORA TION (NNPC) is leading capital expenditure spending in mid-stream oil and gas sector, with $21.1 billion, according to GlobalData, a leading data and analytics company.
NNPC currently has 13 planned and announced oil and gas pipeline projects which are all expected to come online by 2025 and 18 other projects in the upstream and downstream sector of the industry as the company is expected to spend a total of $26.6 billion by the end of 2025.
Eni tops the list with estimated capital expenditure of $26.8 billion, expected to be spent on 20 oil and gas proj“We ects by 2025; it is closely followed by Sonatrach SPA with $26.4 billion (24 projects), a report by the firm said.
The three companies aforementioned are the top spenders in terms of new build capital expenditure to be spent on planned and announced projects across the oil and gas value chain by 2025.
Some of these projects NNPC is involved in are huge and include the AjaokutaKaduna-Kano (AKK) pipeline project, two condensate refineries with a total refining capacity of 200,000 barrels per day, ten large biofuels complexes amongst others.
Also in the upstream sector, Shell leads with an estimated capital expenditure of $20.9 billion to be spent on eight planned and announced upstream projects, while Exxon Mobil Corp and Eni both follow with $15.3 billion each; with both IOCs expected to spend capital expenditure on 11 and 14 projects, respectively.
On the downstream side, Angolan state owned oil company, Sonangol leads again with an estimated capital expenditure of $16.9 billion on the development of four crude oil refineries by 2025.
Indigenous player, OdeAye Refinery Ltd seems to be progressing with its plans to establish modular and greenfield refineries in Ondo and Lagos state, as it is expected to spend $16 billion on two projects and CEF (SOC) Ltd follow with capital expenditure of $10.2 billion, also for two new projects.
On the petrochemical sector front, Dangote Group with an approximate capital expenditure of $6.7 billion expected to be spent on 10 new projects comes in second. Carbon Holdings Ltd is expected to lead with estimated capital expenditure of $9.6 billion to be spent on 10 upcoming petrochemical plants, Indorama Ventures PCL, is in third position with $4.7 billion expected to be spent on three upcoming projects.
Raj Shekhar, oil and gas analyst at GlobalData said: “On the LNG liquefaction front, Exxon Mobil is expected to spend estimated capex of US$6.8 billion on two upcoming liquefaction terminals by 2025. Mitsui & Co Ltd leads in regasification capex, with US$395.3 million to be spent on two upcoming regasification terminals.”
The report also said that BP Plc leads in the gas processing segment, with estimated capex spending of US$1.8 billion on two new projects.