Nigeria targets 10% global LNG sales

Nigeria is set to capture at least 10 per cent of the global market share of Liquefied Natural Gas (LNG) as part of its concerted efforts to harness the nation’s gas resources which currently stand at 192 trillion cubic feet (tcf) of proven reserve.

Speaking at the 2017 Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum in Abuja recently, the Nigeria National Petroleum Corporation (NNPC) Group Managing Director, Dr Maikanti Baru, said the projection was in line with the gas component of the NNPC 12 Business Focus Areas (12BUFAs) initiative which seeks to increase domestic gas supply to five billion standard cubic feet per day (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.

He said these steps would position Nigeria for self-sufficiency in these sectors and at least five per cent 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 per cent 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 power plants which has increased total gas requirement to three billion scuf of gas per day.

“With Nigeria’s current production averaging at 8billion scuf/d of which 1.3bscuf/d 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 2017while 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,” he said.

Baru said Nigeria was on the path of maximizing its gas resources, having put in place a commercially sustainable framework for gas supply, developedan aggressive gas infrastructure blueprint and articulated a gas based industrialization programme that is currently under way.

Saka Matemilola, Chariman of SPE Nigeria Council, 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.