NNPC Targets 285% Rise Domestic Gas Supply by 2020

May 10, 2017
NNPC Targets 285% Rise Domestic Gas Supply by 2020

NNPC Targets 285% Rise Domestic Gas Supply by 2020

By Modupe Gbadeyanka

Nigerian National Petroleum Corporation (NNPC) has disclosed that it was working tirelessly to achieve an increase by 285 percent in domestic gas supply by the 2020.

The agency said it had come up with a scheme in collaboration with its partners to grow gas supply for domestic consumption from 1.3 billion standard cubic feet per day to 5bscf/d by 2020.

Group Managing Director of NNPC, Mr Maikanti Kacalla Baru, speaking at the 7 Critical Gas Development Projects (7CGDP) stakeholders’ meeting on Tuesday at the NNPC Towers in Abuja, said the Federal Government directed it to aggressively pursue gas development to jump start the nation’s economic growth.

Mr Baru outlined the strategic focus for achieving the Federal Government’s mandate to include growing capacity to supply enough gas to generate 15Gigawatts of electricity to the power sector by 2020, stimulating gas-based industrialisation by positioning Nigeria as the African regional hub for gas-based industries such as fertilizer, petrochemicals, methanol and developing gas for export by selectively expanding export footprint in high value and strategic foreign markets.

He said appropriate funding for the seven critical gas projects should be a priority and a key success factor, adding that alternative funding through third party financing option would be adopted to facilitate execution of these vital projects.

The GMD urged the partners work together to ensure that the critical gas projects were executed expeditiously for the benefit of the country, adding that NNPC Top Management was available to work with all stakeholders to ensure timely delivery of the projects.

Responding, the Managing Director of Shell Petroleum Development Company (SPDC), Mr Osagie Okunbor, applauded the GMD for his uncommon focus to ensure optimal production and delivery of gas to power, industry and for export, assuring that with proper alignment of the key parties, the projects would be delivered as scheduled.

Endorsing the partnership, the Director of Department of Petroleum Resources, Mr Mordecai Ladan, who was represented at the meeting, assured the stakeholders that the DPR would provide all the needed support to ensure the timely delivery of the projects.

Present at the meeting were the seven critical stakeholders which include: Shell Petroleum Development Company (SPDC); Nigerian Agip Oil Company (NAOC); Nigerian Petroleum Development Company (NPDC); Chevron Nigeria Limited (CNL); Seplat Petroleum Development Company Plc; Newcross Exploration and Production Limited and Eroton Exploration and Production

The stakeholders made up of NNPC and seven other oil and gas companies listed the seven (7) projects earmarked for fast-track execution to meet the 285 percent domestic gas supply growth projection to include: Assa North-Ohaji South Field Development (ANOH); Oil Mining Lease 24 and OML 18 Joint Development and Shell Petroleum Development Company Joint Venture/Nigeria Agip Oil Company Joint Venture Unitized Gas Fields.

Others are: NPDC’s OML 26, 30, 42 and Chevron Nigeria Limited’s OML 49 Makaraba Cluster Development; SPDC JV Gas Supply to Brass Fertilizer Company; OML 13 Cluster Development and Cluster Development of Okpokunou/Tuomo West (OML 35/62).

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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