Nigeria is set to capture at least 10 per cent of the global market share
of Liquefied Natural Gas, LNG, as part of the concerted efforts to harness
the nation’s gas resources which currently stand at 192 Trillion Cubic
Feet, tcf, of proven reserve.
NNPC Group Managing Director, Dr.Maikanti Baru, who stated this while
delivering a Keynote address at the 2017 Society of Petroleum Engineers,
SPE, Oloibiri Lecture Series and Energy Forum, said the projection was in
line with the gas component of the NNPC 12 Business Focus Areas termed the
12BUFAs initiative which seeks to increase domestic gas supply to 5bscfd
by 2020.
Providing details of the plan, the GMD said the initiative was anchored on:
Growing gas supply to support the power sector, with a view to achieving
at least a 3-fold increase in generating capacity within five years and
stimulating gas-based industrialization with a view to positioning Nigeria
as African regional hub for gas based industries such as Fertilizer,
Petrochemicals, and Methanol etc.
He said these steps would position Nigeria for self-sufficiency in these
sectors and at least 5% of global output.
The GMD explained that the gas component of the 12 BUFAs initiative would
help to “selectively expand our export footprint in high value and
strategic foreign markets, with a view to maintaining a 10% market share
in global LNG trade and dominance in regional gas pipeline supplies.”
On domestic gas utilization architecture, the GMD enthused that measures
have since been activated to ensure that the industry responds adequately
to the new wave of demand necessitated by the Power Sector massive
investments in new power plants and rehabilitation of existing PHCN Power
Plants which has increased total gas requirement to 3billion standard
cubic feet of gas per day.
“With Nigeria’s current production averaging at 8.0bscfd, of which
1.3bscfd is for domestic consumption, 3.5 bscfd for export, 2.5bscfd for
re-injection/fuel gas use and about 0.7bscfd is flared, the need to
encourage gas production to meet with the demand becomes paramount,’’ he
said.
The GMD listed the pipeline infrastructure intervention projects that have
been completed to include: the Oben-Geregu (196km), Escravos-Warri-Oben
(110km),
Emuren-Itoki (50km), Itoki-Olorunshogo (31km), Imo River-Alaoji (24km) and
the Ukanafun-Calabar (128km).
He said that other projects like the strategic East-West Obiafo/Obirikom
to Oben (OB3) pipeline (127km) is scheduled for completion by the end of
2017 while the looping of the Escravos-Lagos Gas Pipeline System from
Warri to Lagos is scheduled for completion by July 2017.
“The Ajaokuta-Abuja-Kaduna-Kano pipeline (650km) is currently on tender.
This project will soon be awarded under a contractor financing scheme.’’.
Dr Baru said Nigeria was on the path of maximizing its gas resources,
having put in place a commercially sustainable framework for gas supply,
developed an aggressive gas infrastructure blueprint and articulated a gas
based industrialization programme that is currently under way.
This year’s SPE Oloibiri Lecture Series & Energy Forum has the theme:
“Domestic Gas Utilization in Nigeria: From Producers to Users”.
Engr. Saka Matemilola, Council Chairman of SPE, Nigeria, earlier in his
opening remarks, called on oil and gas professionals to close ranks and
ensure that the country reaps bountifully from its huge hydrocarbon
resource base.