The Minister of State, Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has identified gas as being key to Nigeria’s growth. He stated that the Federal Government was committed to ensuring the prompt circulation of compressed natural gas (CNG) as a more affordable fuel option.
For him, the Brass Methanol Project’s Gas Sales Purchase Agreement will inject $3 billion into Nigeria’s gas sector and that CNG stations have been deployed across the country through the Nigerian National Petroleum Company Limited (NNPC Ltd) for a transition to cleaner energy. He said: “We have launched the Ride Share CNG Conversion Incentive Programme, alongside the My CNG App, which offers a 50 per cent discount for rideshare drivers.
“This initiative promotes CNG as a cleaner and more affordable fuel option for transportation while reducing the financial burden on drivers and promoting a shift to cleaner fuels. “We have made remarkable progress in commissioning new gas processing facilities across the country, including the 3.1 million metric tonnes per day CNG plant in Ogun State, the 5.2 MMscfd CNG/ autogas facility in Lagos, and the 300 MMscf/d Kwale Gas Gathering Hub in Delta State.
These projects not only boost gas supply but also create jobs, stimulate local economies, and increase access to clean energy.” The minister highlighted the investments of the gas sector aimed at enhancing Nigeria’s position in the global gas market and creating more job opportunities to boost the nation’s economy and urged Nigerians to properly harness the potential in gas for reliable energy delivery and cleaner energy.
He said: “We are making significant strides in unlocking investments. One major milestone is the Gas Sales Purchase Agreement (GSPA) for the Brass Methanol Project, which will inject $3 billion into Nigeria’s gas industry. This investment will not only enhance Nigeria’s position in the global gas market but also stimulate the local economy by creating jobs and expanding our industrial base.
“In addition, under my leadership, as contained in the Petroleum Industry Act (PIA) 2021, we have constituted the Midstream and Downstream Gas Infrastructure Fund (MDGIF) to address critical financing gaps in infrastructure development. This will go a long way in ensuring that our gas resources are efficiently harnessed and delivered to the market.”
He added: “The US Department of State, through its Energy and Mineral Governance Programme committed to renewed technical assistance to further support the Nigerian government and NNPC in reducing methane emissions from the oil and gas sector. “The US Agency for International Development (USAID), through Power Africa, commits an additional $75-$85 million technical assistance to Nigeria. “The US Department of Energy’s Net Zero World Program commits more than $1.3 million for clean energy technical support to Nigerian Partners,” he stated.
Ekpo maintained that there was significant progress in the reduction of gas flare and methane emissions, adding that the commissioning of AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the ANOH-OB3 Gas Pipeline will keep enhancing the growth of the sector. For the Coordinator, Decade of Gas Initiative, Ed Ubong, the need to embrace a gas-driven economy is imperative. He added that it has great benefits to the entire populace.
According to him, it will create jobs for millions of Nigerians, boost the growth of small and medium sized enterprises (SMEs) and stabilise the economy. Ubong said: “With an estimated over 206 trillion cubic feet, Nigeria is regarded as the largest holder of gas reserves in Africa and 9th in the world. These reserves are not only a national asset but a global one, as it provides the foundation for energy security, industrialization, and economic growth.”
For him, the Decade of Gas initiative, launched in 2021 by the Federal Government of Nigeria, represents a concerted effort by the government and private sector to leverage the country’s abundant natural gas resources for economic development and energy transition with a view of powering the country into development and economic growth over the next decade, anchoring on energy sufficiency, industrialization, and economic prosperity.
According to him, gas is not just a fuel, but also an industrial feedstock which can help to herald the country’s electrical generation capacity, cut energy costs, and make electricity supplies more reliable to households, businesses, and industries. He called for investment in gas pipelines and gas-fired power plants. According to him, the industrialisation of Nigeria lies solely on creating a robust domestic gas market for the sustenance of industries like petrochemical plants, fertiliser plants, and manufacturing plants
The nation’s abundant gas reserves, approximately 200 trillion cubic feet of proven gas affirms that domestic gas utilisation can reduce reliance on imported fuels, generate significant revenue and create jobs
He stated that by using gas as an engine for industrialisation, the country would attract new investments, create jobs, and see a diversified economy away from its dependence on crude oil. “The role of governments, the private sector, and the media is critical in actualizing this vision through partnership, innovation, and investment in gas-related projects.
“The ongoing construction of OB3, AKK, ELPs, etc., and investments in LNG facilities as well as gas processing plants are game changers for Nigeria’s energy landscape. “We will need to ensure that we strengthen regulatory frameworks, deepen partnerships between international energy companies, and strive toward the goal of creating an enabling investment environment that attracts investment and builds investors’ confidence,” he said.
The minister, Ubong, and other stakeholders spoke at the recent NAEC Annual Strategic International Conference 2024 of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos. NAEC Chairman, Mr. Ugo Amadi, opined that infrastructure development is very cardinal, hence there is urgent need to upgrade existing infrastructure to support the transition to cleaner energy sources. He stated that by adopting a balanced approach, Nigeria can ensure a successful energy transition that meets its energy needs while addressing financial and environmental concerns.
PETAN The Chairman of Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya, advised that Nigeria needs to focus more on gas to be energy independent and that the country’s energy independence relies heavily on leveraging its vast gas reserves. According to him, Nigeria’s energy independence hinges on effective gas utilization, addressing its challenges, leveraging opportunities, and implementing strategic initiatives that will propel it towards energy self-sufficiency.
He urged the government and other critical stakeholders in the energy sector, to focus more on gas as, according to him, Nigeria does not have enough energy in circulation, hence needs gas to become energy independent and improve its economy. The PETAN Chairman, who is also the Managing Director of Geoplex Drillteq Limited, noted that gas ought to be a more efficient and less carbon form of energy, adding that the world currently advocates for a cleaner energy.
He opined that the nation’s abundant gas reserves, approximately 200 trillion cubic feet of proven gas affirms that domestic gas utilization can reduce reliance on imported fuels, generate significant revenue and create jobs. Ogunsanya said: “Today, the United States is the highest producer of oil and gas. They produce more than Saudi Arabia. They invest in their renewable energy, solar. “This is what Nigeria needs, we don’t have the technology to produce battery powered cars, not that we will not do it in future, but right now.
Gas is supposed to be a more efficient and less carbon form of energy. Nigeria needs to focus more on that.” Ogunsanya further stressed the need to increase the nation’s production capacity in order to reduce imports. He said that would strengthen the naira.
CORAN
Chairman, Crude Oil Refinery Owners Association of Nigeria (CORAN), Mr. Momoh Jimah Oyarekhua, said the summit was to assess deregulation impacts, propose refining advancements, and foster collaboration among government, producers and operators to address challenges. He added that it aimed to attract investment, tackle regulatory hurdles and promote sustainable refining practices, aligning Nigeria’s Oil sector with global clean energy trends.
He stated that a robust partnership between crude oil producers and refineries was vital for maintaining a stable and competitive feedstock supply at competitive rates, benefiting both parties. He opined that joint ventures and strategic alliances could align interests, allowing producers and refineries to mutually benefit from a flourishing oil sector. According to him, implementing transparent pricing mechanisms and enhancing logistical coordination will help minimize inefficiencies, ensuring a steady and cost effective flow of crude oil.
NMDPRA
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said the financial investment required for Nigeria’s gas infrastructure is substantial, with estimates ranging in the billions of dollars. He noted that various reports and initiatives suggested that Nigeria needs significant funding to expand and modernise its gas infrastructure. He, however, stated that the enactment of Petroleum Industry Act (PIA) in 2021 provides a solid foundation for attracting the investment by offering better fiscal terms and regulatory clarity.
Ahmed, represented by the Deputy Director of Public Affairs, NMDPRA, Mr. George Ene-Ita, said the establishment of the Nigerian Midstream and Downstream Gas Infrastructure Fund aimed to support the growth of the sector by improving access to finance and encouraging local and international partnerships. He said: “On the global scale, the continuous call for decarbonization of energy sources away from fossil fuels add pressure on the already complex situation.
“Nigeria, being import-dependent until now, and also having just oil as its major Forex earner, will be caught in the web, should the call for phasing out fossil fuels materialize in the near term. “Energy security is crucial for Nigeria’s economic growth. Despite having a huge gas utilisation deficit, we still flare about 2.5 bilion cubic feet of gas daily. “This wasted resource could generate enough electricity for our energy/power needs. The Decade of Gas initiative seeks to end this waste, ensuring that by 2030, gas contributes significantly to our energy mix adding up to 5.000 MW to the national grid and reducing our reliance on imported fuels .
“As we invest in gas infrastructure, we must ensure we diversify our energy sources and reduce dependency on any single fuel. It is important to note that the number of LPG retrofitting plants in the country is less than 3000 while the CNG compression station is less than 50 for a reliable partner. Projects like the Nigeria Morocco Gas Pipeline and The West African Gas Pipeline position us to meet regional and international gas demands while bolstering our influence on the global stage.
“However, as a developing nation and a member of the Organisation of Petroleum Exporting Countries (OPEC), Nigeria is seen to be delaying climate actions aimed at achieving a net-zero goal. We must navigate the intricacies of loyalty, and our engagement must be strategic, advocating for gas as a key element in Africa’s energy transition and ensuring we secure favourable long-term supply agreement.
Last line
“Nigeria’s energy transition is a complex puzzle requiring careful consideration of finance, energy security and international politics. By adopting a pragmatic approach, leveraging international cooperation and promoting private sector-led Interventions, we can overcome the challenges and create a sustainable energy future for generations to come. Investments in gas must be a top-notch priority to the government at all levels.”