17 May 2017, Sweetcrude, Abuja — The Federal Government has directed the Nigerian National Petroleum Corporation, NNPC, to “aggressively pursue gas development to jump start the nation’s economic growth”.
NNPC’s Group Managing Director, Dr. Maikanti Baru, disclosed this at a meeting with some key partners of the NNPC in Abuja.
In line with this directive, NNPC and seven key partners have evolved a scheme to grow gas supply for domestic consumption by 285 percent, from 1.3 to 5 billion standard cubic feet per day, bscf/d, by 2020.
Speaking at the 7 Critical Gas Development Projects, 7CGDP, stakeholders’ meeting in Abuja, Baru said the planned increase in domestic gas supply is aimed at actualising the Federal Government’s mandate to deploy the nation’s gas resources to stimulate economic growth.
The seven stakeholders working with the NNPC to actualise the 2020 gas dream are Shell Petroleum Development Company, SPDC; Nigerian Agip Oil Company, NAOC; Nigerian Petroleum Development Company, NPDC; Chevron Nigeria Limited, CNL; Seplat Petroleum Development Company Plc; Newcross Exploration and Production Limited and Eroton Exploration and Production.
The NNPC and the stakeholders listed seven projects earmarked for fast-track execution to meet the 2020 date to include Assa North-Ohaji South Field Development, ANOH; Oil Mining Lease, OML, 24 and OML 18 Joint Development and the Shell Petroleum Development Company Joint Venture/Nigerian Agip Oil Company Joint Venture Unitised Gas Fields.
Others are NPDC’s OML 26, 30, 42 and Chevron Nigeria Limited’s OML 49 Makaraba Cluster Development; SPDC JV Gas Supply to Brass Fertiliser Company; OML 13 Cluster Development and Cluster Development of Okpokunou/Tuomo West (OML 35/62).
Baru outlined the strategic focus for achieving the Federal Government’s mandate to increase gas supply to include growing capacity to supply enough gas to generate 15 gigawatts of electricity to the power sector by 2020, stimulating gas-based industrialisation by positioning Nigeria as the African regional hub for gas-based industries such as fertiliser, petrochemicals, methanol and developing gas for export by selectively expanding export footprint in high value and strategic foreign markets.
He said appropriate funding for the seven critical gas projects should be a priority and a key success factor, adding that alternative funding through third party financing option would be adopted to facilitate execution of the projects.