Nigeria’s gas infrastructure can support  power generation, industries -NNPC

*Mele Kyari, Group CEO of NNPC Limited, says the state oil company is taking advantage of Nigeria’s huge natural gas reserves of over 200 Trillion Cubic Feet with a potential to grow to 600 TCF as more investment is expected to support power generation and gas-based industries in Nigeria

Isola Moses | ConsumerConnect

The Nigerian National Petroleum Company Limited (NNPC Limited) has explained how the country’s domestic gas infrastructure network has capacity to transport 6.9 billion Standard Cubic Feet (BCF) of gas to support power generation and gas-based industries.

Malam Mele Kyari, Group Chief Executive Officer (GCEO) of NNPC, at the 2023 Edition of the Oloibiri Lecture Series and Energy Forum (OLEF) Thursday, April 7, 2023, in Abuja, FCT.

The Society of Petroleum Engineers (SPE) organised the forum with its theme as “Effective Gas Resources Utilisation: A Lever for Enhancing Energy Security and Achieving Net-Zero Emission Goals in Nigeria”.

Kyari said Nigeria’s huge investment in gas infrastructure is hinged on the growing natural gas reserves in the economy.

He stated these networks support the country’s aspiration to create Africa’s biggest industrial hub, powered by low-carbon energy, agency report said.

Kyari also noted the NNPC Limited is taking advantage of Nigeria’s huge natural gas reserves of over 200 Trillion Cubic Feet (TCF) with a potential to grow to 600 TCF as more investment is expected due to recent resolution of the Production Sharing Contract disputes with partners.

The NNPC GCEO observed this significant reserve would serve as a low-carbon energy alternative that would support growth in power and industrial sectors, address energy poverty, reduce carbon-footprint and create more employment opportunities.

Kyari further said: “NNPC is playing a leading role in the realisation of National Gas Expansion Programme, which seeks to deepen natural gas utilisation as an alternative transportation fuel, and an important feedstock for gas-based industries development.

“We are working assiduously to ensure timely delivery of gas pipeline infrastructure projects, including the Abuja-Kaduna-Kano gas pipeline corridor, planned Nigeria-Morocco and Trans-Sahara Gas Pipelines, that will connect West African countries to deliver natural gas to international markets.”

For the gas export market, he said the ongoing Nigeria Liquefied Natural Gas (NLNG) Train Seven would expand Nigeria’s LNG production capacity from 22 Million Tons Per Annum (MTPA) to about 30 MTPA.

He said it was leveraging the provisions of the Petroleum Industry Act to attract more investment in the Nigerian Petroleum sector, to continue to guarantee access to energy while aligning with global energy transition.

“As part of our sustainability strategy, NNPC is deploying carbon-reduction initiatives to gradually decarbonise our operations and improve our compliances with global emission reduction.

“All of these cannot be achieved if we do not have security of our operations.”

The Company’s GCEO stated: “We will continue to further deepen collaboration among all the relevant stakeholders; government security agencies, host communities and others to enhance energy security.

“NNPC will deepen relationship with the Industry, Governments, Research Institutions and the Academia to strengthen its Renewable Energy Division to pursue commercially viable new energy ventures in line with Nigeria’s net-zero aspiration by 2060.”

Kyari thanked the SPE for their efforts at promoting innovation, knowledge sharing required for our industry.

He as well urged the organisation and other industry stakeholders to continue to collaborate with the NNPC Limited to guarantee energy security in the West African country.

Speaking at the forum, Mr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), providing clean, sustainable and affordable energy to global populace is a critical challenge.

Komolafe, represented by Dr. Nuhu Habib, Executive Commissioner, Production and Development, NUPRC, said to the Commission was committed to ensuring access to enabling environment and regulatory frameworks for progressive investments in gas production and energy transition achievement.

Also in his address, Mr. Farouk Ahmed, Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), urged concerted efforts of all levels of government to ensure energy security is guaranteed.

Ahmed, represented by Dr. Mustapha Lamorde, Executive Director of Health, Safety, Environment and Community (HSEC), said the authority drafted 20 oil and gas industry regulations to fully deliver value to Nigeria’s economy.

He disclosed out of the regulation, 12 had been gazetted while five out of the gazetted regulation are gas based.

The NMDPRA Chief Executive, however, expressed assurance that the authority is positioned to ensure enabling environment and investments in gas value chain for business to thrive, report said.