NNPC GMD Urges More Oil & Gas Firms To Invest In Gas Transportation Network

The Group Managing Director of the Nigerian National Petroleum Company Ltd, Mr. Mele Kyari has urged more oil and gas companies operating in Nigeria to invest more in gas transportation medium to enable the country boost gas exports to the global gas market.

Kyari said this at an agreement signing ceremony between Hyundai Mipo Dockyard Company Limited, Temile Development Company and NLNG Ship Management Limited.

The pact is the Shipbuilding Contract for the construction of a 23,000 M3 LPG/NH3/VCM Carrier and the Construction Supervision Contract for the 23,000 M3 LPG/NH3/VCM Carrier.

The event was attended by the Chairman of the NNPC Ltd Board Mrs Margery Okadigbo; the Executive Secretary, Nigerian Content Development Monitoring Board, Simbi Wabote; representatives of Hyundai, Temile Development Company and NSML;

Africa has natural gas reserves of over 620 trillion cubic feet as of 2021, as most countries including Nigeria have chosen gas as a transition fuel.

Nigeria has the largest natural gas deposit in the continent with over 200 trillion cubic feet.

At the recently concluded Africa Finance Corporation in Abuja, the leaders launched a road map for its transition where gas was prioritised.

Investors sentiment in investing in fossil fuel has gone down, but the Russian Ukraine war has triggered a fresh scramble for gas to feed Europe which seeks to cut dependence on Russian gas

But Kyari said it had become compelling for Nigeria to have more channels through which gas could be transported into the international gas market.

The NNPC GMD said with the global economy moving towards more cleaner sources of fuel, Nigeria needs to take advantage of that transitioning through increase investment in gas transport infrastructure.

He assured stakeholders that the NNPC will continue to support players in the Nigerian oil and gas industry to succeed.

He said, “There’s a maximum gas penetration into our country and the global market, and it can’t be except we are able to control the pipelines before it can be done.

“This opportunity today is an opportunity we regard. As we all know, we are happy to support heavily and the partners to ensure that this is done and we expect to see more and more Nigerians coming forward to build a transportation medium for gas and other liquid that we handle.

“More importantly, this kind of gas in the country is very important for the world and as we do this, I’m very sure that it will not just deliver gas into the Nigeria market but the international market.

“We are happy Nigerians are taking this lead, you can continue to count on us at NNPC. On behalf of all of us from NNPC particularly my chairman, trust that NNPC is here to support every Nigerian company to prosper and to help every Nigerian company to make progress.

“We are here to support you, we are not a competition, we are here to support you, we are here to make sure that you succeed so that our country will succeed and prosper into what we visualize and contribute globally to energy sale.

In his speech which was delivered virtually, Wabote commended Hyundai, Temile and NSML for the initiative, adding that it will impact heavily on the Midstream and Downstream sectors of the Nigerian oil and gas industry.

He explained that the agreement signing event and subsequent construction and supervision of the contract aligns clearly with NCDMB strategic plan of maximizing the potentials in the Midstream and Downstream Sectors of the Nigerian oil and gas industry, especially as it continues its stride to actualize the Decade of Gas policy of the Federal Government.

He said that the NCDMB’s plan for the sector is underpinned by the need to deepen refining and petro-chemical capacity; utilization of gas as a catalyst for sustainable economic development; optimizing in-country capacity in the refining, petro-chemical and lubricant production industry in Nigeria.

To this end, he said the event is a clear signpost of the possibilities that exist in the Midstream and Downstream sector of the Nigerian oil and gas industry.

The NCDMB Boss added that the project clearly supports the Board’s LPG penetration initiative in Nigeria.

While acknowledging the strides that have been made by NCDMB in the various LPG partnerships, Wabote said the project will further close the gap in LPG penetration in Nigeria.

He said, “I am delighted that this project will bring invaluable local content opportunities in technology and innovation, human capital development and research and development.

“Let me commend the project partners for their various activities in Nigeria that is supporting government’s programme in the Midstream and Downstream sector of the oil and gas industry.

“I thank Hyundai for the Brass Shipyard and other investment projects in Nigeria that will support the repair of vessels as the present one.

” Let me also thank NLNG for the strategic initiative of deploying 100 per cent LPG to the local market to close the gap in respect of LPG penetration in-country.”

While acknowledging that there is still a huge gap he said, this step by NLNG has helped in reducing cost as well as create a cleaner source of energy for our people.