In the last five decades, Nigeria’s economic fortunes have been tied to the volatility in oil prices and as the world moves away from the liquid gold, natural gas is offering a sustainable alternative to Africa’s most populous country.
With over 200 Trillion Cubic Feet (TCF) of proven natural gas reserves, Nigeria sits on Africa’s largest gas reserves but the country’s capacity to develop, gather and process natural gas remains comparatively low. The Nigeria Liquefied Natural Gas (NLNG) company has 22 million tonnes per annum capacity. Train 7 would increase it to 30 million tonnes when it comes on stream
Nevertheless, Australia with 108TCF of gas reserves has 88 million tonnes capacity per annum. Malaysia has 97TCF of proven gas reserves with 29 – 30 million tonnes capacity per annum. Mozambique has about 50 – 120TCF of proven gas reserves and plans a 50 million tonnes capacity per annum.
“Thirty million tonnes per annum capacity for Nigeria is a non-starter. It is time for gas. It is time for Nigeria to fly on the wings of gas,” Tony Attah, MD/CEO of NLNG Limited said at BusinessDay’s Energy Series 2020.
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“However, we must be deliberate and focused to make this happen. It is this deliberateness that is lacking and cannot be achieved in one year. It is time for gas.”
Similarly, Nigeria lags peers in liquefied petroleum gas (LPG) consumption per capita. LPG is also known as cooking gas. Per capita, cooking gas consumption in Nigeria a little above 1 kilogramme (kg). This is comparatively less than its West African peers, such as, 4kg per capita in Ghana and 9kg per capita in Senegal, according to data obtained from the World Liquefied Petroleum Gas Association.
By the end of 2020, it is expected that Nigeria’s LPG capacity hit 1 million tonnes per year. The NLNG contributes currently contributes 300, 000 tonnes and plans to increase this to 450, 000 tonnes. A recent study conducted by the office of vice president estimates that Nigeria’s true LPG capacity is three million tonnes per annum.
The International Centre for Energy, Environment, and Development (ICEED) said 93,000 Nigerians die annually as a result of smoke inhaled while cooking with firewood, with women and children as the most affected persons.
Cooking gas penetration would preserve foreign exchange and improve health. It would also reduce deforestation; reduce the use of kerosene, slow desert encroachment.
“Gas is a tool for economic rebound and reflation. It is an enabler of various sectors or industry. Gas is food. Gas is jobs. Gas is economic development,” Audrey Joe-Ezigbo, president, Nigerian Gas Association (NGA) said. “Gas is revenue. Gas is social welfare for our people. Gas is the wealth of Nigerians. Gas can make Nigeria very great again.”
People familiar with Nigeria’s natural gas value chain say the country is not short of policies and guidelines around gas and opportunities abound. What is lacking is sustained execution.
The required execution would ensure regulatory and commercial frameworks to attract investments, stabilise the sector, and galvanise the development of gas to take Nigeria to that next level where Nigerians can experience gas as food, jobs, and industrialisation.
This also requires looking at infrastructure. “You cannot achieve much without adequate infrastructure, social stability to guarantee security, and attract investments,” Attah said.
This calls greater commitment by the NNPC to implement the Nigerian Gas Master Plan which covers infrastructure, pricing and domestic supply.
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