+234-1-453-7796
info@equitypetroleum.com | | |

NLNG boss seeks passage of regulatory framework for gas development

source Emergy Mix Report on Jun 27, 2020

The need to harness Nigeria’s gas by tackling some of the barriers, including passing a regulatory framework for the upstream sector and the launch of the Nigerian gas transportation code to further drive gas-based have been stressed.

The Managing Director and Chief Executing Officer, Nigeria LNG Limited, Tony Attah, said increasing Nigeria’s presence in the global LNG market, which serves as an opportunity to harness the gas for domestic consumption, has long been discussed by industry stakeholders.

He noted that Nigeria is currently faced with challenges such as gas pricing for the domestic market, limited infrastructure for distribution and a commercially-viable market.

He said: “The FID for Train 7 and award of its EPC contract is very reassuring, as it renews our hope that Nigeria LNG will maintain a significant market share in the global gas market and will continue to reap the potential benefits in the market.

“Whilst a quick switch to renewables and other cleaner energy sources is desirable, current data indicates that the practical reality is that it cannot be achieved on a global scale as quickly as many parties are pushing for.
“We must, therefore, find a way to bridge the gap between where we are today, and where we desire to be. This is the role that gas is expected to play in the medium and long-term.”

Attah said there are vast opportunities available in Nigeria’s huge gas reserves in comparison to crude, and other prospects the Train 7 project will offer the country.

“We have proven 200 tcf of gas, and we have another 600 tcf that we know about but need to prove under the SEC rules. Today, as number 9 in the world in terms of gas reserves, if you prove the 600, you go straight away to number 4, ahead of Turkmenistan.”

“For me, that is a major, major opportunity to really jumpstart the sector. A lot depends on the fiscals and how the government is able to incentivise gas development, which must happen.”

Attah said in addition to increasing the country’s footprints in the Global LNG market through the execution of Train 7, Nigeria LNG has also concluded plans to take advantage of opportunities to develop a domestic gas market and spur gas-based industrialisation.

“We are currently looking at bringing LNG in-country. With the global market dwindling, we see very high demand for gas and other forms of energy in Nigeria, and indeed in Africa. As you know, more than 50 per cent of the population that does not have access to energy in the world is in Africa.
“So, the domestic LNG project that we are looking at is to be piloted in Nigeria and then we will go regional and then look at Africa as a whole. It’s a project that’s already on. As we speak, there are a few people that have already indicated interest, and we are working with them to see how much capacity they are able to develop to make this real.

“We have just established that the price is no longer within anybody’s forecasts, view or control, we perhaps have a future where we have to be a market maker for this to be able to have the essence of the full value chain coming to fruition in-country.”

 

Source: The Guardian


More Insights
Pipeline vandalism in Nigeria down by 47% – NNPC

The Nigerian National Petroleum Corporation (NNPC) has said that 218.37billion Cubic Feet (BCF) of natural gas was produced in March 2020, translating to an average daily production of 7493.65Million Standard Cubic Feet per Day (mmscfd). This was contained in NNPC Monthly Financial and Operations Report for March, 2020, a release by the corporation’s Group General…

EPSNL Insights in a collation of Nigeria's oil and Gas Industry news and developments pulled together from various sources to enhance our site's user awareness...


Previous Insights
NNPC reconstitutes its board of directors

The Nigerian National Petroleum Corporation has reconstituted its board of directors. The oil firm made this known in a tweet on Tuesday. The new board of directors consists Mr Mohammed Lawal (North-West), Dr Tajudeen Umar (North-East), Lami Ahmed (North-Central), Sen. Magnus Abe (South-South), Dr Stephen Dike (South-East) and Chief Pius Akinyelure (South-West). Minister of State…

Train 7 project gets underway as NCDMB, NLNG hold EPC contract kick-off meeting

The Train 7 project is set to commence in earnest as the Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian LNG Limited Tuesday held the kick-off meeting of the Engineering, Procurement and Construction (EPC) components of the project. The event was held virtually and it provided an opportunity for NCDMB key officials to…

Nigeria’s hope of increasing gas supply for power generation suffers setback, yet again

Nigeria’s hope of boosting gas supply for power generation has suffered a setback again as the completion date for Obiafu-Obrikom to Oben (OB3) gas pipeline project has been postponed again because of technical hitches, BusinessDay investigation has revealed. The pipeline is meant to transport gas for power generation and other industrial developments in the country.…