Nigeria’s daily gas production hits seven billion cubic feet
Gas Plant. Pic The Guardian Nigeria
London, Oct. 25, 2017 (AltAfrika)– Nigeria’s gas production has reached seven billion cubic feet per day (cf/d), according to the Nigerian National Petroleum Corporation (NNPC).
The Group Managing Director, Dr. Maikanti Baru, who made this disclosure in Lagos, during a Gas Roundtable organised by Nigerian Gas Association (NGA), noted that 1.2 billion cf/d of the total production is used for domestic purpose, like powering of plants and industries.
Baru, added that 3.3 billion cf/d is exported by the Nigerian Liquefied Natural Gas (NLNG), while 2.7 billion cf/d is re-injected into operations.
Speaking on opportunities in the midstream of the gas value chain, Baru listed areas that should interest investors, including investment in gas processing facilities, mini Liquefied Natural Gas (LNG), floating LNG, gas storage facilities, EPC of over 2000 kilometre gas pipelines, Engineering, Procurement and Construction (EPC) of gas processing facilities, EPC of gas metering and monitoring system and fabrication of pipes.
According to him, downstream value chain offered opportunities for investment in LPG bottling and marketing, investment in gas-based industries (fertilizer, methanol, petrochemicals, CNG stations and conversion workshop), EPC of fertilizer and petrochemical plants, manufacturing of LPG cylinders/accessories.
The NNPC chief added that the Nigerian gas sector remained the largest and most vibrant in Sub-Saharan Africa with lots of potentials, especially in the deep water and untapped gas resources.
He averred that the gas reform was anchored on a robust strategic framework that is focused on maximum economic impact through gas, saying that it aims to drive linkages with agriculture, manufacturing and dispersed small enterprise through power.
Senior Vice President, Gas and Commercial for the Aiteo Energy Group, Victor Okoronkwo, stated that much of Nigeria natural gas accessible to the domestic market is located onshore Nigeria, either on land or swamp.
He said that though offshore Nigeria holds considerable deposits of natural gas, the cost of bringing the offshore gas to market, particularly to the domestic market, will make such gas very expensive.
Okoronkwo noted that a combination of the global market dynamics, fiscal conditions and government interventions will be required to unlock the offshore gas either for export and/or domestic markets.
“With the divestment exercise of the majors, a sizeable part of Nigeria’s gas resource-base is held by the Independents. However, with the collapse of the oil price from the all-time high of the $100+ when the deals were done and present scenario of $50s, the companies are struggling with huge financing costs.
“The tendency therefore, tends to favour expenditure in oil generation, which is faster to cash than most gas utilisation projects. Therein lies the dilemma of investing in gas developments.
“Nigeria’s natural gas production is about 7.5 billion standard cfd, 43 per cent of which is exported to Europe and America, mainly through NLNG and a paltry volume to the West Coast of Africa through the West African Gas Pipeline (WAGP).
“On infrastructure, with a land mass of over 920,000 sq. kilometre, Nigeria has only 4,000 kilometre of gas pipelines, which is grossly inadequate to serve the vast population of over 170 million people,” he said. (The Guardian)