• TotalEnergies to start production at offshore Ima gas project in 2026
• Output will support LNG supply but broader sector issues persist
• Infrastructure gaps and gas flaring remain key challenges to long-term growth

TotalEnergies announced on July 2, that it will begin production from the Ima gas project in 2026, marking a step forward in Nigeria’s effort to better exploit its natural gas reserves. However, this progress remains limited by structural barriers that continue to hinder the country’s regional positioning in the sector.

The French energy company expects production from Ima to reach around 70,000 barrels of oil equivalent per day, equivalent to nearly 300 million standard cubic feet of gas. The field is located in shallow offshore waters in block OML 112, off the coast of Port Harcourt.

The gas will mainly supply the Bonny Island liquefaction plant, operated by Nigeria LNG (NLNG), the country’s leading player in the liquefied natural gas market. This new volume will add to the planned output from the onshore Ubeta field, which has similar capacity and was approved in 2023, with operations expected to begin in 2027.

These developments reflect TotalEnergies’ continued commitment to Nigeria, even as international investors remain cautious amid global market uncertainties. Still, these targeted additions are not enough to resolve the deeper structural weaknesses in Nigeria’s gas industry.

According to the NEITI 2022–2023 report, Nigeria’s total natural gas output declined from 2,521 to 2,491 billion standard cubic feet (SCF), a 1.2% drop over the period. Much of the gas produced continues to be flared due to the lack of adequate evacuation and processing infrastructure.

In early July, Gbenga Komolafe, head of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), reaffirmed the agency’s commitment to ending routine gas flaring by 2030. However, that goal faces persistent obstacles, including delays in key infrastructure projects like the Ajaokuta–Kaduna–Kano (AKK) pipeline, which limit Nigeria’s ability to harness its gas domestically.

Maintaining Nigeria’s role in Africa’s gas sector will depend on completing ongoing infrastructure projects, easing regulatory constraints, and building a domestic market capable of absorbing available gas volumes.

Steps are being taken in that direction, including the restart of construction on the AKK pipeline, rollout of the Nigerian Gas Flare Commercialization Program (NGFCP), and promotion of compressed natural gas (CNG) for household use.