A Review of the Nigerian Energy Industry

Nigeria targets 500mcf gas expansion for power

Gas pipelineKUNLE KALEJAYE 18 August 2014, Sweetcrude, Lagos – One of Nigeria’s oil and gas industry strategic focus is to consolidate on the gas supply expansion with an additional 500 million cubic feet per day, SweetcrudeReports has learnt.
The additional 500 million cubic feet gas expansion is expected to support about 2,000 ‎megawatt of power generation.
SweetcrudeReports also gathered that Nigeria’s gas production at the end of 2013 stood at 7.6 billion cubic feet per day, but this is expected to rise to 8 billion cubic feet per day this year.
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, said at the recent 38th Nigerian Annual International Conference and Exhibition of the Society of Petroleum Engineers Nigeria Council in Lagos, that besides the increase in gas production, the industry also aims to sustain crude oil and condensate production at 2.388 million barrels per day.
She also hinted that the industry will focus on gas flare reduction to about 7 percent with the help of key gas monetisation ‎projects.
She stated that gas supply to the domestic market grew to an all-time high of 1,500mmcf/d, of which 70 percent was deployed to the power sector and 30 per cent to support the manufacturing sector.
“The strategic focus of the industry towards achieving the next of its development includes to continue with the Phase VII and VIII 3D seismic acquisition programme in the Chad Basin, complete the processing of the acquired aeromagnetic data that covers the entire frontier basins,” the minister said.
On other aspects of the industry strategic focus, she said these included: “To complete the critical expansion of the Escravos-Lagos pipeline to two billion cubic feet per day capacity. To complete and commission the 100 mmscf/d Oredo-Pan Ocean gas supply project designed to utilise spare capacity in the Ovade gas plant.
“To continue the extension to the North and East gas pipeline via the Akwa Ibom-Enugu-Ajaokuta-Kano bone gas pipeline project utilising the international Finance Corporation, IFC, loan, Eurobonds and Private funds.
‎”Continue with the Ogidigbe Industrial Park project which is expected to start initial construction phase in 2014 that will create over 150,000 jobs at the peak of the construction activities. And to expand the compressed natural gas project initiative by replicating the Benin success strategy to cover the other geopolitical zones”.
Commenting on crude oil theft, the minister said in 2013, the average figure for crude oil theft and deferment was 215, 000 barrels per day.
But, Alison-Madueke lamented that a plethora challenges have negatively impacted the nation’s ability to meet its crude oil production target in addition to causing revenue loss, environmental degradation and sometimes loss of lives.
“Due to theft-related vandalism, crude oil supply to our refineries remain contained thus affecting our refining uptime and volume.
“In other to miligate this anomaly, the option of crude transportation by marine vessel has been deployed thereby increasing the operating cost of refining by an additional sum of $7.52bbl.
“NNPC, in collaboration with relevant stakeholders, organised a security workshop to discuss and proffer str‎ategies for improving the security of crude supply and evacuation of refined products to and from the refineries,” the minister said.
She maintained that the country yearns for an end to these challenges to entrench an enabling environment as one of Africa’s topmost emerging ‎market while ensuring Nigeria’s energy and economic security.
The minister admitted t‎hat reforms were always difficult to establish due to the inherent change and push back from stakeholders, but expressed confidence “that the Nigerian oil and gas industry possesses the tenacity and courage to overcome the obstacles that I have mentioned today.”
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