NNPC Will Deepen Strategy With NCDMB, Investors To Enhance Gas Supply, Utilization, Kyari Assures

The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mallam Mele Kyari has assured that the Company will deepen it’s cooperation strategy with the Nigerian Content Development Monitoring Board and all relevant domestic and international stakeholders to enhance the supply, delivery and utilization of gas.

Kyari said this on Monday in Uyo, Akwa Ibom State at the opening session of the 11th Practical Nigerian Content Forum.

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Executive Secretary NCDMB, Simbi Wabote and GCEO NNPC LTD, Mele Kyari

Speaking on the theme, “Deepening Nigerian Content Opportunities in the Decade of Gas,” Kyari said the NNPC Ltd will leverage on the provisions of policies/regulations, technological breakthroughs, innovative financial mechanisms and other key initiatives such as the National Gas Expansion Programme to make the energy sector resilient.

L-R: Executive Secretary Of the Nigerian Content Development Monitoring Board, Simbi Wabote and Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mallam Mele Kyari

He expressed optimism that this cooperation will create value for the NNPC’s business and shareholders and make natural gas not only a transition fuel but a destination fuel of choice.

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He told participants at the event that the global energy sector has, to a large extent, recovered from the impact of COVID-19 pandemic, only to be challenged by historical under-investment, tightening of monetary policies, high inflation, geopolitical tension and security issues, among others, resulting in high and volatile energy prices, and uneven and often low energy supply and demand.

The GCEO NNPC LTD, Mele Kyari

According to him, energy poverty and security which, hitherto, was a regional and under-developed countries concerns, has now become a global concern, with countries developing all sorts of approaches and innovations to remain energy resilient.

He stated that international Agendas/Frameworks, including the UN’s 2030 Agenda for Sustainable Development and successive Conference of Parties have continue to recognize the role of natural gas as a fuel of choice for sustainable development and for smooth energy transition to a low carbon future.

Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mallam Mele Kyari

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This, he noted, had created the much-needed opportunity to power the global economy in a sustainable manner using clean fuels to address global energy related challenges and create value for businesses and the society.

In line with this and with over 200 TCF of proven gas reserves and a potential of growing to 600TCF, the NNPC GCEO explained that Nigeria recently declared 2021-2030 as the decade of gas towards a gas-powered economy with natural gas used as direct source of energy and its derivative, such as LPG and CNG, for clean cooking and driving.

He said, “Utilizing our upstream gas assets, and key gas pipeline infrastructure (ELPS, Oben – Ajaokuta/Geregu, the vast eastern network covering Alakiri-Obigbo, Ikot Abasi and Imo River, and the Gas Transmission Systems (GTS 1-5) to NLNG, NNPCL and its shareholders produce gas in excess of 6 Bscf/d and deliver to the domestic, regional (WAGP) and international gas/LNG markets, thus building in-country capacity and value to shareholders as well as earning foreign revenue.

“Today, the NNPC JV power plants (450 MW Okpai I and 650 MW Afam VI) continue to be key sources of power generation to the country and more power plant projects are being progressed.

“To further deepen gas utilization, we are exploiting more gas resources, including in the frontier basins, deploying /constructing more gas infrastructure & facilities e.g., 2 Bscfd OB3, 2.2 Bscfd AKK, Ibadan-Ilorin-Jebba Pipeline (EIIJ), Qua Iboe-Obigbo-OB3, Obigbo – Umuahia – Ajaokuta (OUA) pipelines and ANOH Gas Processing Plant, etc.,) and utilization points (AKK Power Plants, MEPP, petrochemical plants, , retail CNG refueling stations, etc. thus integrating gas supply sources with the demand centers across the country

“We are also complementing these gas penetration projects with several renewable energy and emission reduction projects to enhance the sustainability of the energy sector.

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“Furthermore, we are embarking on LPG Penetration Scheme through the establishment of Micro Distribution Centers (MDCs) across the country to deepen LPG consumption for clean cooking (stop the detrimental in-door air pollution and deforestation) while creating opportunities for fabrication of LPG/CNG/LNG tanks, gas stoves, cylinders, etc.

“This is underpinned via enhanced LPG production NEPL’s IGHF, NLNG, expansion of terminals and LPG trucking capacity.”

Kyari said all these expansions and investments have created opportunities for Nigerian content, noting that the NNPC is encouraging organizations to identify the relevant areas in which they can participate in

“I am very pleased of the rapid growth of our local capacity, and we will continue to collaborate with NCDMB and other stakeholders to propel our local talents to achieve their full potential and compete favorably, domestic and internationally

“We would continue to deepen our Gas Cooperation strategy with all relevant domestic and international stakeholders to enhance gas supply, delivery and utilization while leveraging on the provisions of policies/regulations, technological breakthroughs (e.g., Carbon capture, utilization and storage-CCUS to lower GHG emissions), innovative financial mechanisms and other key initiatives such as the National Gas Expansion Programme to make the energy sector resilient

“It is my believe this would create value for our business and shareholders and make natural gas not only a transition fuel but a destination fuel of choice,” he added.

Also, in a presentation made at the event, the NNPC’s Executive Vice President, Gas, Power and New Energy, Mr Mohammed Ahmed said the NNPC’s huge investment in gas infrastructure is supported by its access to growing natural gas reserves.

This, he said, is further supporting the nation’s aspiration to create Africa’s biggest industrial hub that would be powered by low-carbon energy.

Ahmed explained further that the NNPC’s expansion of domestic gas infrastructure is aimed at supporting Nigeria’s economic recovery and growth plan, by building in flexibilities to enable investors to explore Nigeria’s diverse market while providing the needed corridor to supply natural gas to African regional markets and Europe through the Nigeria-Morocco Gas Pipeline

Speaking on areas of investments, he said opportunities abound in both upstream, midstream and the downstream sectors of the industry.

In the Upstream sector, he said there are opportunities for exploration of frontier basins; development of upstream NAG fields; and financing of greenfield/brownfield production.

In the Midstream sector, Ahmed said there are opportunities in technology for infrastructure(CPFs, pipelines and power P
Plants);
development of gas-based industries such as fertilizer and ammonia; gas flare commercialization projects; Nigeria gas flare commercialization programme (NGFCP).

He also stated that there are more investments opportunities in provision of funding and technology at the flare sites and strategic gas marketing such as LPG, CNG, and domestic LNG.

In the Downstream sector, Ahmed said opportunities abound in gas for transportation; domestic gas distribution; LPG Storage and distribution and manufacturing of LPG cylinders.

He further assured that the NNPC Ltd remains committed to supporting Nigerian Content Development in all its businesses.

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