Nigeria launches virtual gas pipeline system

gas refinery 23The Nigerian National Petroleum Corporation (NNPC) and a private firm have signed a contract for the activation of virtual gas pipeline network for power generation, in the drive for optimisation of the nation’s vast gas resources

The project which would be facilitated through the installation of Mini-LNG plants is designed to supply, in the first instance, about 84mn scf of gas per day by transporting gas from production fields using customized cryogenic tankers to areas that are not easily accessible through pipelines.

Delivering the Keynote address at the 11th Nigerian Gas Association International Conference & Exhibition, group managing director of the NNPC, Dr Maikanti Baru, said that the innovative gas supply technique would also further develop Nigeria’s energy sector and consequently help revitalise the manufacturing, textile and housing sectors through the provision of the much needed affordable energy source.

He further noted that this was in tandem with the objectives of the current administration’s economic growth recovery plan (ERGP) which aims to accelerate non-oil revenues, improve transportation infrastructure, drive industrialisation, stabilise the macroeconomic environment, achieve agriculture and food sufficiency and ensure energy sufficiency.

Providing an update on Nigeria’s gas credentials, the group managing director informed that the nation’s current proven gas reserve was about 202 tcf up from an initial figure of 199 tcf with a potential for up to 600 tcf in undiscovered resources.

In terms of production, Baru informed that current average gas production is in the region of 8.5bn scf per day. Of this volume, about 3.7bn scf per day is exported, 2.7bn scf per day is used upstream for gas reinjection/gas-lift, 1.5bn scf per day is used domestically for power and industries, while the balance of 0.6bn scf per day is currently being flared.

Nigeria had significantly increased domestic gas supply and had reformed the commercial framework for gas by reviewing the domestic gas price to export parity and developed world-class standardised gas supply agreements.

According to him, NNPC had developed a clear-cut strategy for growing gas supply to meet the unprecedented growth in gas demand through, namely:

Completion of the short-term gas supply projects, Incremental supply from Nigerian Petroleum Development Company (NPDC) Oredo, Utorogu and Odidi re-entry projects. Upon completion, the projects would deliver about 240mmscfd of gas to the domestic market by Q4 2018.

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