More investment, enhanced security seen boosting Nigeria’s gas resource use

Nigeria’s effective utilisation of gas as a resource and as the accepted transition fuel will require higher investments and an enhanced security system, industry operators and regulators have said.

This was discussed at the Oloibiri Lecture Series and Energy Forum 2023 organised by the Society of Petroleum Engineers (SPE) themed Effective Gas Resources Utilisation: A lever for Enhancing Energy Security and Achieving Net-Zero Emission Goals in Nigeria.

In his address, Mele Kyari, Nigeria National Petroleum Company Limited (NNPCL) said Nigeria needs a stronger economy to tend to its teeming population and eradicate poverty adding that the country’s energy demand will grow faster than what renewable energy technologies are likely to offer in the near future.

He said there is need for massive investment and security upgrade to effectively utilize gas, adding that the huge investment in gas infrastructure is hinged on growing the country’s natural gas reserves, which will support its aspiration to create Africa’s biggest industrial hub powered by low-carbon energy.

“Nigeria’s huge natural gas reserves provides us with ready access to low-carbon energy to address energy poverty; Although we have infrastructure to support this but it is not enough, we need all the necessary infrastructure on ground to ensure that we first build our own country gas infrastructure,” he said.

Kyari added that efforts are being intensified to ensure timely delivery of major domestic gas pipeline infrastructure projects including the Abuja-Kaduna-Kano gas pipeline corridor and associated power plants as well as the planned Nigeria-Morocco and the Trans-Sahara Gas Pipelines, that will connect West African countries to deliver natural gas to the international markets.

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“Our country is energy deficient and the bridge fuel to energy security and sustainability of oil and gas operations is gas; all these cannot be achieved if we do not have security of our operations and adequate and timely investments to build resilient energy systems capable of delivering energy to support socio-economic development in a sustainable manner,” he said.

Gabriel Aduda, Permanent Secretary, Ministry of Petroleum Resources in his address said infrastructure is essential for ensuring that gas is available when and where it is needed, especially in expanding domestic utilisation and it can also help to reduce the cost of gas by increasing competition and efficiency.

He said the Ministry is playing a crucial role in the effective utilization of gas resources in Nigeria, by developing policies and regulations that encourage the use of gas, promote investment in gas infrastructure, and the development of a competitive and efficient gas market.

“One of the most important ways is by promoting the development of gas infrastructure, creating enabling environment and partnerships with the private sector to build pipelines, storage facilities, and other infrastructure necessary for the transportation and storage of gas,” he said.

The P.S said some results have been achieved in the domestic intake of LPG and CNG in several small and medium scale industries across the country, adding that collaboration with stakeholders in the industry will ensure that Nigeria maximizes the potential of its gas resources while also reducing its carbon footprint and enhancing energy security.

Ahmed Farouk, chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said Nigeria has abundant gas resource while it continues to suffer energy crisis.

Farouk who was represented by Mustapha Lamorde, Executive Director of Health, Safety, Environment and Community (HSEC), NMDPRA said It is therefore necessary to see more indigenous use of the vast resources available through formation of enabling policies, available finance and investment, indigenous capacity building and in-sector diversification.

“The oil and gas sector must look inward and leverage potential; there are untapped opportunities in the midstream and downstream gas value chain which should be a revolution to foster economic stability and growth of our nation,” he said.