Tinubu Hails $800m Ima Gas Project FID as 50 Year Old Resource Moves to Development

President Bola Tinubu

President Bola Tinubu has welcomed the $800 million Final Investment Decision (FID) reached by AMNI International and TotalEnergies for the development of the Ima Gas Project, describing it as evidence that reforms are helping unlock long-delayed investment in Nigeria's gas sector.

The Ima gas field, located offshore across Oil Mining Leases (OMLs) 112 and 117, was discovered in 1973 but remained undeveloped for more than five decades. The FID marks a major step towards commercialising the resource and integrating it into Nigeria's wider gas and LNG value chain.

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The project is expected to begin production in 2028, with TotalEnergies saying output should reach a plateau of 350 million cubic feet of gas per day. The gas will be transported through a 22-kilometre pipeline to Nigeria LNG's facilities on Bonny Island and is expected to supply about one-third of the gas required for the ongoing Train 7 expansion.

Tinubu links Ima FID to investment reforms

Tinubu said the investment demonstrated what could be achieved by creating a more predictable and competitive environment for investors.

The President argued that the value of a natural resource lies not simply in its existence but in the ability to convert it into productive investment, employment and economic opportunities.

He said the administration remained focused on unlocking more of Nigeria's gas resources to support industries, expand exports, create jobs and strengthen economic activity.

The Presidency said the Ima development is the fourth major gas project to reach FID since Tinubu assumed office, following the Iseni, Ubeta and HI projects. It presented the series of investment decisions as part of the administration's broader effort to increase investment in Nigeria's oil and gas industry.

Ima gas resource remained undeveloped for over 50 years

The history of the Ima field is central to the significance of the investment.

Although discovered in 1973, the resource remained undeveloped for more than five decades despite its potential to supply feedgas to Nigeria LNG.

The latest investment decision moves the field from discovery and appraisal towards actual development.

TotalEnergies said the field will be developed with a single platform in shallow waters near Bonny Island. The company said the project will use electricity supplied from shore, incorporate permanent methane detection and monitoring, and operate without routine flaring.

Project expected to strengthen Nigeria LNG supply

One of the most important commercial elements of the development is its connection to Nigeria LNG.

The Ima field is expected to provide around one-third of the gas required for the ongoing Train 7 expansion, which will increase Nigeria LNG's liquefaction capacity from 22 million tonnes per annum to 30 million tonnes per annum.

Additional feedgas could therefore support Nigeria's LNG export capacity and strengthen the country's ability to convert natural gas resources into export earnings.

The development also reinforces the importance of upstream gas supply to the viability of downstream LNG infrastructure.

Nigerian companies and banks play major role

The project also reflects increased Nigerian participation in a major upstream development.

AMNI International, a Nigerian-owned exploration and production company, holds a 60 per cent interest in the project, while TotalEnergies holds 40 per cent and operates the development.

The Presidency said Nigerian financial institutions arranged 77 per cent of the project's financing.

About 60 per cent of the project's workforce is also expected to come from host communities, including Bonny, Finima and Andoni in Rivers State.

The financing and local-content dimensions could create opportunities for Nigerian contractors, service companies and other businesses connected to the development.

Gas investment could support industrial development

The Federal Government has increasingly positioned natural gas as a resource that can support industrial activity beyond LNG exports.

Additional gas supply can support power generation and industries that use gas as fuel or feedstock, including fertiliser, petrochemicals and other energy-intensive businesses.

The Presidency said the administration's gas strategy is focused on using the resource to support LNG exports, industrial feedstock, fertiliser and petrochemical production, power supply and opportunities for Nigerian businesses and workers.

For the broader economy, the impact will depend on whether increased gas production translates into reliable supply, investment and productive industrial capacity.

Implications for infrastructure and property development

Large energy projects can create secondary demand for infrastructure and property in host and adjoining locations.

The Ima project is connected to Bonny Island, an established centre of Nigeria's LNG industry. Increased project activity could support demand for accommodation, logistics, commercial services and other facilities required by workers and businesses.

For the property sector, the potential impact is particularly relevant where energy investment is accompanied by improvements in roads, power, water, telecommunications and other infrastructure.

However, new investment does not automatically translate into sustained property-market growth. The scale of any housing or commercial property impact will depend on project execution, workforce requirements, local infrastructure capacity and the pace of related economic activity.

Investment decision highlights wider gas-sector reforms

The Ima FID comes against the backdrop of government measures intended to improve the commercial environment for oil and gas investment.

The Presidency said Tinubu issued a series of directives in 2024 aimed at improving fiscal competitiveness, reducing project-development costs and shortening contracting timelines.

Olu Verheijen, Special Adviser to the President on Energy, said the Ima development illustrates the objective of those reforms: moving resources that have remained underground into projects capable of creating employment, business opportunities and government revenue.

The FID itself, however, marks an investment commitment rather than completed production. The project's eventual economic impact will depend on construction, financing, execution and its targeted 2028 start-up.

Outlook

The $800 million Ima Gas Project represents a significant step towards developing a gas resource that has remained idle since its discovery more than five decades ago.

For Tinubu's administration, the FID also provides an opportunity to point to increased investment activity in the gas sector and the role of recent reforms in improving project economics. For the energy industry, the more immediate significance lies in the project's potential to provide additional feedgas for Nigeria LNG and expand domestic participation in a major upstream development.

For Nigeria's wider infrastructure and property markets, the project will be worth monitoring as development progresses. Increased energy-sector investment can generate demand for housing, logistics, commercial facilities and supporting infrastructure, particularly around host communities.

The key measure will ultimately be whether the FID translates into timely project delivery, additional gas supply and sustained economic activity around the infrastructure and communities connected to the development.

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