31 October 2016, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation, NNPC, has stated that with the renewed drive for industrialization through improved gas supply, $51 billion investment opportunities exist across the gas value chain in Nigeria.
In his keynote presentation at the 10th Nigerian gas Association, NGA, International Conference and Exhibition, Group Managing Director of the NNPC, Mr. Maikanti Baru, disclosed that the investment opportunities subsist in the midstream and downstream value chain of the gas industry.
According to him, $35.4 billion of the total investment opportunities would come from the power plants, gas exploration and production facilities, fertilizer plants, virtual pipeline and flare gas commercialization projects.
He also stated that $16 billion investment opportunities abound in the real estate, Free Trade Zone development and concessioning, port infrastructure, central procession facilities, transmission pipelines, Liquefied Petroleum gas plants, pipe milling and fabrication yards.
Baru stated that the proposed National Gas Policy would drive the much-needed investment in the gas sector, adding that it would also ensure clearly-defined boundaries between upstream, midstream and downstream sub-sector of the gas sector.
He also stated that the policy would guarantee open access for midstream assets, such as processing facilities and pipelines among others, while it would bring about enabling fiscal regimes and guarantee host communities engagement.
Baru further disclosed that 2017 and beyond would see the implementation of the new gas policy; implementation of gas development projects to bridge gas supply deficits and the expansion of gas infrastructure network.
He further stated that there would be new investments across the gas value chain, while work would commence on the Nigerian Liquefied Natural Gas, NLNG, 7 and 8, as well as the integration of exports and domestic gas supply pipelines.
In addition, he disclosed that 900 million Standard Cubic Feet (SCF) per day of flared gas would be available commercialization, while he stated that would current efforts at driving gas supply in the country, power generation is estimated to rise to 20,000 megawatts (MW) by 2020.
In addition, he said, “Growth of the Nigerian Gas Sector is anchored on growing power sector and the Gas based industries. Plan is in place to close the shortfall in demand of about 4.7 billion Standard Cubic Feet per day (SCFD) by 2020 through the development of the 7-big bang projects which will deliver about 3.4 billion SCFD in the short to medium term and 7.0 billion SCFD in the long term.
“There is a pragmatic road map to grow power generation capacity by at least three-folds within the next 4 years.
“In addition, our strategic aspiration is to convert P3 reserve to 2P commercial category and also initiate deliberate exploration for the 600 trillion cubic feet undiscovered gas resources.”