Nigeria’s gas infrastructure can transport 6.9bn bcf for power generation – NNPCL

Nigeria’s domestic gas infrastructure network has the capacity to transport about 6.9 Billion Standard Cubic Feet (BCF) of gas to support power generation and gas-based industries, the Nigerian National Petroleum Company Limited has said.

The NNPC Group Chief Executive Officer, Mele Kyari, disclosed this at the 2023 edition of the Oloibiri Lecture Series and Energy Forum held in Abuja on Thursday.

Mr Kyari noted that Nigeria’s huge natural gas reserves provide the nation with ready access to low-carbon energy to address energy poverty.

He said Nigeria’s huge investment in gas infrastructure is hinged on her growing natural gas reserves, thus supporting the nation’s aspiration to create Africa’s biggest industrial hub powered by low-carbon energy.

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

“This significant reserve will serve as a low-carbon energy alternative that will support growth in the power and industrial sectors, address energy poverty, reduce carbon footprint and create more employment opportunities,” he said.

Mr Kyari added that NNPC is playing a leading role in the realization of the Federal Government’s National Gas Expansion Programme, which seeks to deepen natural gas utilization as an alternative transportation fuel, and an important feedstock for the development of gas-based industries.

“We are working assiduously to ensure timely delivery of major domestic gas pipeline infrastructure projects including the Abuja-Kaduna-Kano gas pipeline corridor and associated power plants.

“NNPC is also making progress on the planned Nigeria-Morocco and the Trans-Sahara Gas Pipelines that will connect West African countries to deliver natural gas to the international markets,” he said.

For the gas export market, he said the ongoing NLNG Train 7 will expand Nigeria’s LNG production capacity from 22 to about 30 million tons per annum (30 MTPA).

He said NNPC is deploying carbon-reduction initiatives to gradually decarbonize its operations and improve its compliance with global emission reduction as part of our sustainability strategy.

“All of these cannot be achieved if we do not have the security of our operations. We will continue to further deepen collaboration amongst all the relevant stakeholders; government security agencies, host communities and others to enhance our energy security.

“This will require the provision of adequate and timely investments to build resilient energy systems capable of delivering energy to support socio-economic development in a sustainable manner,” he said.

To secure relevance in the global energy market of today and the future, Mr Kyari said NNPC will leverage partnerships with the industry, governments, research institutions and academia to strengthen its renewable energy division to pursue commercially viable new energy ventures in line with Nigeria’s net-zero aspiration by 2060.

“Our goal is to be the dynamic global energy company of choice that is committed to sustainably delivering energy for today and energy for tomorrow,” he said.

Energy securityIn his address, Gabriel Aduda, permanent secretary, Ministry of Petroleum Resources, said energy security and achieving net-zero emissions goals are two of the most pressing challenges of modern time, and they are particularly relevant to Nigeria as a major oil and gas producer.

Mr Aduda said globally there are efforts towards the creation of an international market for fossil energy that minimizes gas flaring, methane, and CO2 emissions across the value chain to the fullest extent practicable.

He explained that Nigeria became the first African country to regulate methane emissions from its oil and gas sector in 2022, achieving the Global Methane Pledge (GMP) goal of cutting anthropogenic methane emissions by 30 per cent by 2030.

“Achieving this goal will drive significant energy security, food security, health and several other development gains. Huge successes have been achieved with the enactment of the Petroleum Industry Act (PIA) 2021,” he said.

He added that the efficient use of gas resources is a key component of achieving both energy security and reducing emissions.

“Gas is a cleaner burning fossil fuel than oil or coal, and it can play a significant role in reducing greenhouse gas emissions. In addition, the utilization of gas can help to diversify Nigeria’s energy mix and reduce the country’s dependence on oil,” he added.

Mr Aduda noted that the Ministry of Petroleum Resources is playing a crucial role in the effective utilization of gas resources in Nigeria, by developing policies and regulations that encourage the use of gas, promoting investment in gas infrastructure, and developing a competitive and efficient gas market.

“This includes creating an enabling environment and partnerships with the private sector to build pipelines, storage facilities, and other infrastructure necessary for the transportation and storage of gas.

“This infrastructure is essential for ensuring that gas is available when and where it is needed, especially in expanding domestic utilisation and it can also help to reduce the cost of gas by increasing competition and efficiency.

“We are already achieving very amiable results in the domestic intake of LPG and CNG in several small and medium scale industries across the country,” he said.

He explained that effective utilization of gas resources will enhance energy security and achieve net-zero emission goals in Nigeria.

“By working in collaboration with stakeholders in the industry we can ensure that Nigeria maximizes the potential of its gas resources while also reducing its carbon footprint and enhancing energy security.

“As we work to achieve effective gas resource utilization, it is also essential to promote public awareness and education on the benefits of gas as a cleaner and more affordable source of energy.

“This will require targeted outreach and engagement with communities, as well as the development of programs that provide affordable access to clean energy for households and small businesses,” he said.