Nigeria aims to capture 10% of global LNG market
Nigeria is targeting to capture 10% of the global liquefied natural gas (LNG) market as part of its initiative to leverage the country’s gas resources which currently stand at 192 trillion cubic feet (tcf) of proven reserve, according to Dr. Maikanti Baru, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC).
He made the announcement while delivering a keynote address at the 2017 Society of Petroleum Engineers (SPE), Oloibiri Lecture Series and Energy Forum, 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 5billion standard cubic feet per day (bscfd) by 2020.
Providing details of the plan, the Baru said the initiative was anchored on growing gas supply to support the power sector, with a view to achieving at least a three-fold increase in generating capacity within five years and stimulating gas-based industrialization with a view to positioning Nigeria as Africa’s regional hub for gas-based industries such as fertilizer, petrochemicals, methanol and others.
He said these steps would position Nigeria for self-sufficiency in these sectors and at least 5% of global output.
Baru 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% market share in global LNG trade and dominance in regional gas pipeline supplies.”
On domestic gas utilization architecture, Baru 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 Holding Company of Nigeria (PHCN) power plants which has increased total gas requirement to 3 bscfd.
“With Nigeria’s current production averaging at 8.0bscfd, of which 1.3bscfd 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.
Baru 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 other projects like the strategic East-West Obiafo/Obirikom to Oben (OB3) pipeline (127km) is scheduled for completion by the end of 2017 while 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 Nigeria was on the path of maximizing its gas resources, having put in place a commercially sustainable framework for gas supply, developed an aggressive gas infrastructure blueprint and articulated a gas-based industrialization program that is currently under way.
