NNPC to Double Domestic Gas Capacity
By Adedapo Adesanya
The Nigerian National Petroleum Corporation (NNPC) is set to expand its domestic gas footprint with the delivery of the Escravos-Lagos Pipeline System (ELPS) II to double capacity from 1.1 billion standard cubic feet of gas (BSCF) to 2.2 BSCF.
The national oil company, according to its Group Managing Director, Mr Mele Kyari, this would be done through the OB3 gas pipeline that will connect east and west.
At the ongoing 4th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos, Mr Kyari stated that the NNPC would commence the construction of the Ajaokuta-Kaduna-Kano gas pipeline in the second quarter of the year which will serve as an enabler to further boost the economic activities of the country.
Represented by the Chief Operating Officer (COO), Gas and Power, Mr Yusuf Usman, he stated that the recent passage of the Deep Offshore Act into law has set the Industry on the path of growth.
Mr Kyari explained that Nigeria’s position as Africa’s leading exporter of LNG and the 4th in the World after Qatar, Australia and Malaysia, was on its side as this will make it capture more LNG market with the Final Investment Decision of the NLNG Train 7.
“Oil and gas resources have remained the major source of revenue that has kept the wheels of Nigeria moving for over five decades.
“Oil, as we all know, has served as key enabler to the economic transformation of many nations like Norway, Saudi Arabia, UAE, Qatar and many other oil resources dependent nations,” the NNPC Chief stated.
He said that there was inseparable connection between the Nigerian Oil and Gas Industry and the country’s economy, adding that every aspect of the nation’s economic and social life revolved around the hydrocarbon resource.
Mr Kyari then called for more hard work to diversify the economy away from overdependence on oil revenues in order to avoid the risk of market fluctuations that may impact the nation’s fiscal equation.
“The current Government under the leadership of President Muhammadu Buhari has made it a priority to ensure revenues from oil and gas resources are utilized to support the emergence and growth of other non-oil sectors of the economy.
“In order to achieve this objective, it means more money will be required from the oil and gas to fund new economic projects outside the Oil and Gas Industry,” he said.
Mr Kyari said the NNPC, as a national Oil Company, had been repositioned to support the vision of Buhari-led administration for economic diversification, even as he maintained that in the Upstream, the corporation targeted increasing oil production from 2.3million barrels per day to 3million barrels per day and at the same time working with partners to significantly reduce cost per barrel in order to improve the flow of the needed revenue to support economic diversification.
He said the NNPC was encouraging private investors to join the train as Nigeria was still a net importer of petroleum products due to the current state of NNPC refineries and the long absence of private investment in the refining sector.
He said the NNPC was inviting investors to key into the revamp and expansion of domestic refining capacity in order to support the growth of the Downstream sector and guaranty energy security for the nation.
“We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products. In the same vein, the corporation would support the actualization of the 650,000 barrels per day Dangote Refinery, as well as other private initiatives along this line.
“Our plan is for Nigeria to become a net exporter of petroleum products by 2023,” he added.