Nigeria is determined to utilise its abundant natural gas resources to revolutionise operations of the nation’s power and industrial sectors of the economy, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Ltd., Mele Kyari, has said.
Kyari stated this in Abuja, on Tuesday during a signing of a Shareholders’ Agreement (SHA) between the NNPC Ltd., UTM Offshore, an indigenous oil and gas company, and the Delta State Government for the development of the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria.
Kyari who spoke on the benefits of gas to the nation’s economy said in the next two to three years, the country plans to use gas to bring about a revolution in some key sectors.
“The outcomes from the utilisation of gas will be clear on the table. There will be prosperity, and value will be created to the economy. Not just creating gas for export, the NNPC Ltd. will be progressing on all our initiatives of bringing gas into the domestic market.
“Our backbone infrastructures are almost ready to ensure we achieve that. Once that happens, we will see the immediate impact on the power sector, gas-based industries and several other collateral value that this will create,” the GCEO said.
Describing the FLNG project as a task that must be done, Kyari said Nigeria was a gas country whose abundant gas resources have lergely been under-utilised.
The new focus on gas utilisation, he said, was to monetise such gas resources for the benefit of the country and the global economy.
He said the FLNG Project clearly fitted into the Federal Government’s gas aspirations under the Decade of Gas Initiative and in line with Presidential agenda to create a gas hub so that value could be maximised, and Nigeria achieved the prosperity that it deserved.
Reiterating NNPC Ltd.’s commitment towards the project, Kyari said the FLNG was the first of its kind the company was taking keen interest and holding an equity in.
“More than this, there are several Floating LNGs that NNPC Ltd. are promoting, including fixed LNG projects. We are happy to collaborate with the Delta State Government. We will take practical steps to get it done. We are committed to delivering this project in time, on schedule and in the best possible cost,” the GCEO added.
Earlier in his remarks, the Group Managing Director of UTM Offshore Limited, Julius Rone, described the SHA execution as another significant milestone in actualizing Nigeria’s first indigenous FLNG.
He thanked the Federal Government for his dedication towards developing the nation’s gas resources, as exemplified in the recently held COP28 Conference in Dubai, UAE, where the President made a commitment for the complete flare-down and use of Nigeria’s gas resources as a transition fuel to achieve the global transition to cleaner energy fuels and reduce methane emission in oil and gas operations.
Rone also lauded the GCEO of NNPC Ltd for his leadership and commitment in ensuring that Nigeria’s gas resources are developed within the provisions of the Petroleum Industry act (PIA) 2021.
Also speaking, the Governor of Delta State, Sheriff Oborevwori said the Delta State Government, which holds 40% of Nigeria’s proven gas reserves, decided to take 8% equity because of its conviction of the strategic importance of the project to the national economy.
Apart from producing over 300,000 metric tonnes of liquefied petroleum gas (LPG), otherwise called cooking gas, which would be dedicated to the domestic market, the Governor said the FLNG project would also help to mitigate the environmental hazards in the Niger Delta region.
He said the project would also help in reducing gas flaring; creating ample employment opportunities and ensuring the switch from kerosene and firewood to cleaner energy, thus improving the health and general wellbeing of the people.
In attendance to witness the execution of the SHA was the Honourable Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, who said the FLNG will ensure the monetisation of Nigeria’s gas resources to drive the economy and attain energy security.
Speaking briefly on the project, the Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye lauded the Federal Government for its belief in the ability of gas to drive and accelerate economic growth which has been exemplified by the initiative to create a gas economy, especially through the Decade of Gas.
The FLNG facility is expected to produce 1.81 to 2.72 metric tonnes per annum (mtpa) of gas.
The NNPC LTD. controls 20% equity of the project, while UTM Offshore and the Delta State Government hold 72% and 8% stakes respectively.
