May 20, 2022

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$51Billion Investment Needed to fund Nigeria Gas Industry, Said NNPC.

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$51Billion Investment Needed to fund Nigeria Gas Industry, Said NNPC.



The Nigerian National Petroleum Corporation (NNPC) seeks the fund of $51 billion to invest in the midstream and downstream sector of the Gas industry. This fund will aid the attainment of the growth phase in the industry in Nigeria.

This message was made known by the Group Managing Director of the NNPC, Dr. Maikanti Bark at a keynote address at the Nigerian Gas Association (NGA).

The NGA organises its 10th International Conference and Exhibition in Abuja. The theme of the 2016 conference and exhibition is: “Nigerian Gas Roadmap and Its Potential for Regional and Global Influence: Its Implementation, Challenges, Opportunities and New Way Forward.”

Nigeria has always been ranked high on gas flaring issues. According to the Energy Information Administration (EIA) in 2015 Nigeria was ranked fifth in the world as a country that flared gas. Moreover, in 2011, the country was put at number two. This shows a little improvement in the reduction of gas flaring.

The gas flared will have been exploited and sold thereby increasing the Gross Domestic Product (GDP) of the country.

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However, the title of the keynote address of Dr. Bark is “New Growth Phase for Gas Business in Nigeria.” In his speech the GMD made it clear that about $35.4 billion investment will be required in the gas exploration and production activities, power plats projects, fertilizer plants, virtual pipelines and flare gas commercialization initiatives.

He also said the following in his keynote address: “$16 billion investment will also be needed in the Free Trade Zones (FTZ) infrastructure development and concessioning, port infrastructure, central gas processing facilities, gas transmission, LPG plants, real estate development, pipe milling and local fabrication yards among others.”

According to him, “some of the key enablers that will be required for the growth of the gas sector include clear definition of boundaries between upstream, midstream and downstream sectors, appropriate pricing structure and guarantees for payment, host communities engagement and conducive environment for investors.”

He added: “Beyond growing gas for power sector, there has been a strategic positioning of the sector to support massive gas based industrialization. The intent is to position Nigeria as a regional hub for gas based industries such as fertilizer, methanol, petrochemicals, central processing facilities, etc. The first of this effort is the planned 30 square kilometer gas based industrial park in Delta State. This will be Africa’s largest purpose built gas park supporting gas based industries.”

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“To bridge the huge gas supply gap, some strategic synergy opportunities for gas development were identified amongst the Joint Ventures (JVs), Production Sharing Contracts (PSCs) and independent operators which when pursued and implemented will not only bridge the unforeseen long term shortfall in gas supply but will also enable the nation to meet its gas aspiration.”

He explained: ”seven key big bang gas development projects have been identified from the strategic synergy opportunities to deliver about 3.4 billion cubic feet of gas per day to bridge the foreseen medium term supply gap by 2020.”

The President of NGA, Mr. Bolaji Osunsanya, earlier in his speech expressed the readiness of the association to collaborate with the Federal Government and other key stakeholders to harness the abundant natural gas resources in the country so as to reposition the country to become a regional hub of gas in Africa.

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