Nigeria, with its vast gas reserves of 209.5 billion standard cubic feet, is looking to harness its natural gas as a transitional fuel amidst the global push towards cleaner energy. However, the country still faces infrastructure challenges that hamper the efficient utilization of its gas reserves, despite efforts to promote gas as an alternative to declining oil revenue.
The Nigerian National Petroleum Company Limited (NNPCL) has highlighted the need to complete major domestic gas pipeline infrastructure projects, including the Abuja-Kaduna-Kano (AKK) pipeline, Trans-Sahara Gas Pipelines, and the Nigerian-Morocco pipeline, which are expected to supply gas to Europe and other markets. In addition, the NNPCL is actively working on carbon-reduction initiatives to decarbonize its operations and comply with global emission reduction regulations. Moreover, Nigeria has become the first African country to regulate methane emissions from the oil and gas sector, achieving the Global Methane Pledge goal of cutting anthropogenic methane emissions by 30% in 2030. These developments show that Nigeria is making significant strides towards cleaner and more sustainable energy production and utilization.
Nigerian National Petroleum Company Limited (NNPCL), yesterday, harped on the need to complete the Ajaokuta-Kaduna-Kano (AKK) pipeline, Trans-Sahara Gas Pipelines and Nigerian -Morocco pipeline.
During the 2023 Oloibiri Lecture Series and Energy Forum of the Society of Petroleum Engineers (SPE) in Abuja, the Group Chief Executive Officer, Mele Kyari, stated that advancements are being made on the AKK pipeline, Trans-Sahara Gas Pipelines, and Nigerian-Morocco pipeline.
The Trans-Sahara Gas Pipelines project has an estimated cost of $13 billion, while the Nigerian-Morocco pipeline, a 6,000-kilometre project that will run through 13 African countries along the Atlantic coast and supply landlocked nations, is expected to cost $25 billion. The AKK pipeline, which spans 614 kilometres, was awarded for $2.8 billion.
Despite Nigeria’s efforts to promote gas as an alternative to declining oil revenue, the ongoing conflict between Ukraine and Russia has impacted the energy sector, causing Europe to focus on gas as a strategic resource and view Africa as an important partner. This shift in focus has led to renewed interest in gas pipelines to supply Europe and the world.
During the conference themed “Effective gas resource utilisation: A lever for enhancing energy security and achieving net-zero emission goals in Nigeria,” Kyari stated that the NNPCL is actively working to ensure the prompt delivery of significant domestic gas pipeline infrastructure projects. These include the Abuja-Kaduna-Kano gas pipeline corridor and its associated power plants. Additionally, the NNPCL is making headway in the development of the Nigeria-Morocco and Trans-Sahara Gas Pipelines. These pipelines will connect West African countries and supply natural gas to global markets.
Nigeria, which has gas reserves of 209.5 billion standard cubic feet, is seeking to use gas as a transitional fuel in light of the global push to move away from fossil fuels. However, the lack of adequate infrastructure remains a challenge, even as the country depends on export markets for local utilization.
Kyari highlighted that the Nigeria Liquified Natural Gas (NLNG) Train 7 project, currently in progress, will expand LNG production capacity for export to approximately 30 million tons annually. He also mentioned that the NNPCL is implementing carbon-reduction initiatives to decarbonize operations and improve compliance with global emission reduction regulations.
Gabriel Aduda, the Permanent Secretary at the Ministry of Petroleum Resources, has announced that Nigeria has become the first African country to regulate methane emissions from the oil and gas sector in 2022, thus achieving the Global Methane Pledge (GMP) goal of reducing anthropogenic methane emissions by 30% in 2030. He also highlighted that the Petroleum Industry Act (PIA) has resulted in the establishment of regulatory frameworks with distinct mandates for the growth and development of the oil and gas sector.
The country’s achievement of the Global Methane Pledge goal not only contributes to the global efforts to reduce greenhouse gas emissions, but it also presents economic benefits for Nigeria. By reducing methane emissions, the country can capture and monetize more gas that would have otherwise been lost during oil production, leading to increased revenue and energy security. Additionally, the regulation can attract foreign investments in Nigeria’s gas sector, as international investors and customers are increasingly prioritizing sustainability and emission reductions in their operations. By becoming a leader in methane emissions regulation in Africa, Nigeria can position itself as an attractive destination for sustainable investments and strengthen its energy diplomacy in the continent.
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