$51b worth of investment opportunities in gas sector — NLNG
•NNPC, NUPRC woo investors to harness nation’s 209TCF of gas
Nigeria LNG Limited, yesterday, in Yenagoa said that about $51billion worth of investment opportunities currently exists in the country’s gas sector.
This is coming as Nigeria National Petroleum Company Limited (NNPCL) woos investors to unlock the potential of the nation’s 209 trillion standard cubic feet of gas reserves.
The Manager, Commercial Business Support Nigeria LNG, Daniel Obianyor, while speaking at the Nigeria Oil and Gas Opportunity Fair (NOGOF), said that opportunities are in investments in Free Trade Zones (FIZ), Central Gas Processing Facilities, LNG expansion, petrochemical plants, gas exploration and production, pipe milling and local fabrication as well as gas transmission, power projects, flare gas commercialisation among others.
Noting that the NLNG had successfully delivered over 5,000 LNG cargoes with 23 dedicated LNG Ships, Obianyor said that the company has generated $113 billion in revenue, $35 billion in dividends and additional $8 billion in taxes.
The Executive Vice President, Gas, Power & New Energy, NNPCL, Mohammed Ahmed, said that investors have opportunities to build petrochemicals, fertiliser and methanol plants that would boost economic activities and overhaul Nigeria’s agricultural sector.
He noted that the midstream segment of the oil sector in the country also has enormous opportunities that investors must tap as the country look to vigorously pursue the development of gas in the coming years.
Ahmed noted that the potential in the domestic market, especially in the areas of Liquefied Petroleum Gas and Compressed Natural Gas remained sacrosanct to meet government’s autogas and LPG expansion targets.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also noted that it doors are open to potential investors willing to collaborate in building partnerships and unlocking the full potential of Nigeria’s upstream petroleum sector.
Leveraging the Petroleum Industry Act (PIA), 2021, the Commission Chief Executive of NUPRC, Gbenga Komolafe, said that the nation is ready to attract local and international investors in the oil and gas space.
He said that the Commission has developed priority regulations to reinforce meaning to the intent of the act by creating a predictable regulatory environment for would-be investors.
So far, five priority regulations have been gazetted, while 13 others have been submitted to the Ministry of Justice for review as eight are at various stages of development, he noted.
“Nigeria’s role as a major player in the global oil and gas industry is certainly not in doubt, as we are currently the highest oil producer in Africa and the second highest in terms of proven oil reserves, with a huge potential for growth.
“As of January 1, 2023, Nigeria boasts of 36.966 billion barrels of oil and condensate reserves and 208.83 trillion cubic feet of natural gas reserves, opening a large opportunity for investments in the upstream oil and gas sector.
“Despite the global clamour for decarbonisation and energy transition, oil and gas remain relevant in the global energy mix, to guarantee energy security for our teaming population.
“In order to deliver on her commitments towards reduction of carbon footprints, Nigeria has adopted gas as a transition fuel and expects to significantly increase gas consumption during “the Decade of Gas” declared by the President, Muhammadu Buhari GCFR. This adoption of natural gas as a transition fuel is a boost for Nigeria which has over 208 trillion cubic feet (TCF) of gas reserves that can be harnessed to help the country’s transition to Net Zero by 2060, while driving economic growth and development, thereby simultaneously tackling energy poverty and meeting the climate ambition,” Komolafe said.