NNPCL To Take Final Investment Decision On Six Key Gas Projects

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The Nigerian National Petroleum Company Limited (NNPCL) has hinted of its plans to take Final Investment Decision (FID), on six key gas projects before the end of this year as part of efforts to expand Nigeria’s gas commercialisation and domestication.

Similarly, the company disclosed that it would inaugurate three mini-Liquefied Natural Gas projects this August.

The Company’s Group Chief Executive Officer, Mele Kyari, made these disclosures on Thursday while speaking at the inaugural Africa Gas Innovation Summit 2024 with the theme “Igniting the Future: Driving Sustainability in Africa’s Energy Landscape through Gas Technology and Innovation” organised by the Society of Petroleum Engineers (SPE) in Abuja

Kyari expressed optimism that FID, would facilitate the roll out of six additional Compressed Natural Gas mother stations, as several of CNG refueling stations were currently being upgraded by the oil firm nationwide.

The NNPCL Group Chief Executive, who was represented by the company’s Executive Vice President, Gas, Power and New Energy, Olalekan Ogunkeye, said the NNPCL had signed various agreements for the development of gas projects in line with the the Federal Government’s drive to deepen gas usage.

Kyari clarified: “In order to accelerate gas commercialisation, bearing in mind that this is the era of gas, NNPC has signed MoUs and project development agreements for floating LNG projects which will be the first in Nigeria, while currently executing a 30mmscuf/d small scale mini-LNG project.

“Indeed, we are currently participating in three mini-LNG projects slated for ground-breaking this August. NNPC is also currently leading the Federal Government’s autogas initiative.

“Aside from the recent inauguration of the 5.2mmscuf/d Ilasamaja mother station CNG plant, the GCEO of NNPC recently announced plans to take FID within this year and roll out additional six CNG mother station plants with similar capacity, and scores of CNG refilling stations are being renovated and upgraded to provide access to cleaner and cheaper fuel across the country”, the industry expert added.

He listed other ongoing initiatives of the company, based on the Federal Government’s Decade of Gas programme, as including the development of several gas-based industries in industrial hubs at strategic locations nationwide, boosting fertiliser and chemical plants, among others,.

Kyari noted that Sub-Saharan Africa still remained energy deficient despite contributing the lowest volume of emissions globally.

He expatiated: “Nigeria, however, is blessed with abundant natural gas resources of more than 209TCF of gas, which can take us out of these challenges by providing access to electricity, clean cooking fuel, autogas and feedstock for other industries, thereby generating wealth and improving our well-being.

“From an NNPC standpoint, this summit’s theme and topics clearly resonate, and NNPC is at the forefront of orchestrating a sustainable energy future for itself and Africa leveraging on gas technology and innovation”, the NNPCL’s CEO added.

To underscore the critical roles of gas in economic development and to maintain energy security, Kyari said NNPC had embarked on several gas infrastructure projects such as the second phase of the AHL gas processing plant, the 300mmscuf/d ANOH gas processing plant, and the  ANOH gas pipeline project, all inaugurated by the President of Nigeria.

“NNPC is absolutely focused on leveraging on the nation’s gas assets to significantly generate value and opportunities for all Nigerians. This in deed is what Nigerians deserve”, he added.

Kyari also pointed out that technology and innovation were key buffers for growth and development and would assist in the drastic transformation of industries, adding that NNPC had developed its research institute as a result of this.

In his keynote address at the event, the – noted that Africa with its abundant natural gas resources stood at a pivotal juncture and Nigeria must play a leading role in that.

Represented by the Permanent Secretary of the ministry, Nicholas Ella, the minister said: “We have the opportunity to leverage these resources not only to meet our energy needs but also to drive sustainable development. The transition to a sustainable energy future demands that we embrace innovative technologies and practices that minimise environmental impact while maximising efficiency and productivity.

“This entails investing in cutting-edge research, promoting the deployment of advanced gas technologies, and encouraging the adoption of best practices across the industry. Technological innovation lies at the heart of our endeavour.

“From exploration and production to transportation and utilisation, advancements in gas technology are revolutionising the sector.

“Innovations in Liquefied Natural Gas, CNG for vehicles, gas-to-power solutions, and carbon capture and storage are just a few examples of how technology is reshaping the landscape”, the minister added

Speaking at the forum, the Chairman of the Society of Petroleum Engineers, Nigeria Council, Salahuddeen Tahir, pointed out that the top challenges confronting Africa’s energy landscape comprised poor funding, technological and skills gap, high costs of oil and gas production, infrastructure challenges, global push for transition to cleaner energy as well as security issues.

Tahir advocated that “there is no gainsaying that Africa needs to urgently innovate for the benefit of our industry, our respective economies and our citizenry.”

During her virtual presentation at the summit, titled “Building Strategic Partnership”, the representative from the National Office of Hydrocarbons and Mines, Morocco, Amina Benkhadra, disclosed that 13 countries within the territory of the $25bn Nigeria Morocco Gas Pipeline project would sign an Inter-Governmental Agreement for cross-border cooperation in this second quarter of this year to further consolidate on the successes recorded so far on the project.

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