07 April 2015, Lagos – The Managing Director of the Nigeria Liquefied Natural Gas (NLNG) Limited, Mr. Babs Omotowa, has called for the deployment of an accelerated development model in producing and utilising Nigeria’s vast gas deposit.
In his presentation at the 2015 edition of the Nigeria Oil and Gas (NOG) conference and exhibition in Abuja, Omotowa advocated for an adoption of the business model used by Qatar in developing and utilising its gas resources, saying the Qatari model could help Nigeria to drive improved investments in the sector.
He stated that notwithstanding extant policy efforts of the government to drive investment in Nigeria’s gas sector, an initiation of a partnership model that include both international financial and technical expertise could help unlock the latent economic potential in the country’s 180 trillion cubic feet (TCF) of proven gas deposit and estimated 600TCF of unproven reserves.
“Qatar has over the last few years built the largest Liquefied Natural Gas (LNG) and Gas to Liquid (GTL) industry (Pearl, Oryx, Palm) in the world along with petrochemical industries. Today, these projects are generating over $100 billion/year for the country. They also have created opportunities across the value chain by establishing three mega industrial cities of Mesaieed, Ras Laffan, Dukhan, which now provides operational and maintenance support for the gas industry,” Omotowa said.
He further noted that: “The strategic integrated approach to industrialisation has enabled the sustainable retention of 1.3 million jobs. All these were done under a partnership approach attracting both international financial and technical expertise in a win-win manner. Such a model as Qatar can provide a master plan for the harnessing of our 180TCF proven gas reserves and estimated 600TCF unproven gas reserves.”
Omotowa explained that such integrated business model for Nigeria’s gas sector will amongst other expectations ensure that more gas reserves are added to the country’s existing reserves while propelling the growth of gas-based industries in the country.
“It is now several decades that we have become aware of the potential 600TCF unproven gas reserves. With the high value that gas brings, the country will benefit from a renewed aggressive exploration and development program to move these to proven gas reserves and subsequently to production. Many of the major gas fields including at offshore locations like Bosi with 5-7TCF of gas, Nnwa/Doro with 6-9 TCF of gas and Erha, Ngolo, Assa-North portends huge opportunities,” Omotowa said.
“An accelerated development program for our gas revolution will require government policies, fiscals and enabling environment that will attract foreign direct investment and technical support, especially as many of these findings are in the more technically challenging offshore locations,” he added.
He also spoke about the need for the country to diversify her energy sources to include more of hydro, coal, solar and wind energy sources, to relieve the gas sector from contributing so much for domestic power generation and used more in industries.
“Power solution should be more diversified and gas used more for industries like petrochemical, in integrated manner as Qatar so as to create massive sustainable employment and increase GDP contribution,” Omotowa explained.
– This Day