Nigeria has the largest gas reserves on the African continent and the ninth largest reserves in the world but much of these resources are yet to be proven.
According to experts, the unproven reserve is the quantity of energy sources estimated with reasonable certainty, from the analysis of geologic and engineering data, to be recoverable from well established or known reservoirs with the existing equipment and under the existing operating conditions.
A reserve is considered proven if it is probable that at least 90 percent of the resource is recoverable by economically profitable means
Nigeria has about 202 trillion cubic feet (Tcf) of proven gas reserves, from around 187 Tcf late last year, valued at over $460billion and about 600 Tcf of unproven gas reserves but only about 25 percent of those reserves are under development
“Proving the 600TCF will move us to number four in the world from the current 9th position which I believe should be a key objective for this decade of gas agenda. Essentially, Nigeria is a gas nation as we have more gas than oil on a BoE basis,” said Tony Attah, managing director of the Nigeria LNG during a recent conference organised by the company.
Attah said that Nigeria currently plays a significant role in the global energy sector, holding the position of the largest oil and gas producer in Africa and the sixth supplier of global LNG through the operations of NLNG.
Read Also: How PIB can unlock $540bn Nigeria gas find
“Our Train 7 project alone will attract about $10billion into the country with significant revenue generation for government and our shareholders but also over 12,000 jobs opportunity for Nigerians.
“This is a decade of gas, another decade of sustained operations in NLNG, a decade of Train 7 and perhaps Trains 8,9 and 10; a decade of elimination of gas flaring, a decade of more Domestic LPG in households in Nigeria; and overall, a decade of fully gas-powered economy,” he said.
Nigeria has consistently punched below its weight when it comes to harnessing its abundant gas resources.
After years of treating gas as an irritant in the quest for liquid gold (oil), the coronavirus pandemic which has traumatized businesses globally leading to the shut down of factories and farms, has also cratered oil prices to levels not seen in decades, Nigeria is finally smelling the gas.
The Federal Government through the National Gas Expansion Programme (NGEP), designed to expand domestic gas supply and stimulate demand in-country, is advancing policies that will tackle challenges with Nigeria’s gas sector including poor fiscal terms, lack of market-reflective prices and poor infrastructure, as well as providing opportunities for local companies.
Such projects like the Nigeria Gas Flare Commercialization Program (NGFCP), National Gas Expansion Programme (NGEP), flag off of the National Gas Transportation Code, the construction of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline and setting up a committee on Gas Sector-Wide Review of the Domestic Gas Pricing Framework are steps in the right direction.
To really jump start the economy using gas as an economic enabler, requires investments in the development of LPG, CNG and small LNG projects. The collocation of CNG in NNPC-owned and operated mega stations in the 36 states and the FCT will further increase a wider-adoption of gas-powered vehicles if backed by investments in conversion systems.
Ramping gas supply to the domestic market from proven reserves for power and industries will double current production capacity and the additional volumes will ensure an uninterrupted supply of LPG triggering more demand.
The Ministry of Petroleum Resources has said that it is engaging with the Manufacturers Association and labour unions on the development of Nigerian Gas based industries from textile manufacturing to production of polymer resins. This plan will really take-off with the availability of gas feedstock from new reserves.
“Gas is everything for Nigeria. We must use what we have to get what we want. Saudi Arabia and Dubai used oil to move their economies to becoming one of the best in the world, Qatar has used gas to transform from a fishing economy to becoming a global gas giant. Nigeria has both oil and gas. However, Nigeria has thus far ridden on the back of oil for over 50 years, but the time has come for Nigeria to fly on the wings of gas. At NLNG, we believe It is time for GAS,” Attah said.
He urged the Federal Government and stakeholders in the energy industry to maximise the Decade of Gas by focusing on developing and legislating the right regulations, policies, and laws that will engender the right environment for the much-needed investment in all the streams of the sector.
Attah also said that NLNG was ready to partner with the government in making the Decade of Gas a reality as the Company continues to actualise its vision as a global LNG company, helping to build a better Nigeria.
The world fast moving away from oil but the world population set to grow by an additional two billion by 2040 will continue to fuel the demand for energy by more than 30 percent. The world will need more energy but will need it cleaner and cheaper to manage climate change and the 20C challenge through decarbonisation said Attah.
“Energy transition has begun, resulting in a massive change in the global energy mix while renewable sources are gaining prominence to replace coal and other forms of fossil fuels. Gas is set to be the fastest-growing transition fuel of the future,” he said.
