• Saturday, May 18, 2024
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BusinessDay

‘Nigeria’s gas exports to reach 6 bcfpd by 2030’

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Export of Nigeria’s gas would grow to about 6 billion cubic feet per day (bcfpd) in 2030 as two new Liquefied Natural Gas (LNG) projects come on stream in 2017 and 2019 respectively, Augustine Avuru, managing director, Seplat Petroleum Development Company Limited, has said.

He said the increase in gas exports would be brought about by new LNG projects such as Nigeria LNG (NLNG) Train 7 and Brass LNG.

When completed, the Train 7 is expected to lift the total production capacity of the NLNG to over 30 million tonnes per annum (mtpa) LNG. The Final Investment Decision for the Brass LNG project is expected to be taken in the second quarter of this year.

Currently, the NLNG has six trains in operation with an overall capacity of some 22 mtpa of LNG and 4 mtpa of Liquefied Petroleum Gas (LPG). Avuru, who spoke at the LBS Breakfast Club meeting recently, stated that gas production in the country had grown to about 6 bcfpd in 2012 and would further rise to about 10 bcfpd in 2030.

In his presentation entitled “The Outlook for Energy: A View to 2030”, he said: “Domestic gas consumption increases from 1bcfpd in 2012 to about 3bcfpd in 2020,” adding that the increase in domestic gas consumption is mainly driven by the power sector.

He however noted that interest in unconventional gas production was growing, even in Europe, Nigeria’s biggest LNG export market.

He added: “If Europe is successful as the United States, LNG production from Nigeria may be significantly reduced.”

This, according to him, may precipitate reforms to accelerate domestic gas consumption in the country.

Continuing, he said: “Though demand remains strong in China and India, there is potential tightening of competition as oil and gas exporters seek new market.”

He stated that the real danger to Nigeria lied in potential U.S. export of her shale gas to global LNG market, even as the U.S. is not a significant export market for Nigerian LNG.

“Nigeria must recognise that a significant resource shift has turned a key trade region into a possible direct competitor,” he said, adding that Nigeria needs to develop clear regulatory and competitive policies, as the U.S. and new players from Africa compete for the same export market.

 

FEMI ASU