NNPC seeks extensive foreign investments in gas development, completes 500km gas pipeline.
The Nigerian National Petroleum Corporation (NNPC) on Wednesday said it was leading a drive to attract massive global investments into the nation’s gas sub-sector.
This is contained in a statement by Mr Ohi Alegbe, the Group General Manager, Group Public Affairs, NNPC in Abuja.
The statement stated that the measure was aimed at ameliorating the effect of drop in crude oil prices on the Nigerian economy.
It stated that the Group Managing Director, NNPC, Dr Joseph Dawha, stated this at a panel session at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, USA.
It stated that the session was organised by the Petroleum Technology Association of Nigeria.
It stated that the theme of the session was “Natural gas development in Nigeria: A compelling investment frontier in a turbulent oil market”.
It stated that the GMD was represented by David Ige, Group Executive Director, Gas and Power of the NNPC.
It said Dawha noted that with its immense gas potentials, Nigeria “needs not be and must not be a victim of price drop, instead we should position to benefit from it”.
“The GMD said for the nation’s gas sub-sector to benefit from the drive, industry players must brace up for the challenges ahead.
“The Nigerian gas sector has seen tremendous focus in the last few years.
“We have grown capacity at a pace of 18-20 per cent with supply now at about two billion cubic feet of gas per day in the domestic market from a humble start of about 300 million cubic feet per day a few years ago.’’
The GMD said that based on projected growth demand anchored on growing industrial requirements, the sub-sector needed to grow further to some six billion cubic feet of gas per day.
He noted that in spite of the annual investment of millions of dollars in the last four years in gas supply and infrastructure, there was need for significant addition to infrastructure and supply development.
“For example, we have built over 500km gas pipelines and we are building an additional 120km currently; but we need to build many more kilometers of pipelines to connect new markets and gas sources.
“We need investments in gas processing, micro-Liquified Natural Gas, Compressed Natural Gas as well as upstream Non-Associated Gas (NAG) development. Therein lie the compelling investment opportunities,’’ he said.
He said the theme of the session was not only apt but in tandem with the aspiration and projection of the NNPC for the oil and gas industry.
“It brings to our collective consciousness the potential in Nigerian domestic gas sector.
“We can turn the gloom inherent in low price into a breakthrough for gas based industrialisation of Nigeria,’’ Dawha stated.