The Nigerian National Petroleum Corporation (NNPC) targets to deliver five billion cubic feet (5bcf) of gas per day to the domestic market by 2020, the Group Managing Director of the corporation, Dr. Maikanti Baru has said.
In his industry address titled ‘Riding the Waves of Boom and Bust: Common Objectives, Diverse Perspectives,’ Baru told participants at the 2017 conference of the Nigeria Council of the Society of Petroleum Engineers (SPE) that the recent drive by the Ministry of Petroleum Resources and NNPC to create an enabling environment for growth of the domestic gas market cannot be over emphasised
The GMD noted that based on the presidency’s intervention, the industry has been witnessing a calm operating environment in the Niger Delta.
“We are very appreciative of government’s efforts and urge other stakeholders to join hands towards ensuring a peaceful, environmental-friendly, profit-generating industry,” he said.
He said the NNPC’s strategic plan for gas was to deliver five bscfd to the domestic market by 2020, adding that the corporation does not intend to lose focus on retaining and expanding Nigerian share of the global market.
According to him, over 1,000 kilometres of major gas pipelines have been laid and commissioned, while an additional 470 km is currently in construction phase.
He added that anothe 1400km is intended for construction before the end of 2017.
“Also, along with the development of physical infrastructure, commercial frameworks are being put in place to support the growth of the domestic gas market. Progress has also been made in the reduction of flared gas volumes from a peak of 2.5bscf/d a couple of years ago to about a current volume of 700 million standard cubic feet per day (MMscf/d). We envisage a near zero flare in the not too distant future as adequate infrastructure and frameworks are being put in place,” Baru added.
He also disclosed that the government’s intentions to develop this market will be made clear to the prospective investors.
The NNPC boss further stated that based on a projected domestic gas supply deficit of 3bscf/d, the corporation had identified seven critical gas development projects, which can be delivered in the short and medium-term to bridge the impending gas supply shortfall.
“I held a stakeholder forum with the seven project owners in Abuja on May 9, 2017 where I made it clear that funding for the identified projects will not be an impediment to their successful completion. In the event that Joint Ventures or NPDC as the case may be fail to raise the required funds, opportunities may be extended to third party investors to help finance the projects,” he explained.
In his welcome remarks, the 2017 Chairman of SPE Nigeria Council, Dr. Saka Matemilola noted that he petroleum sector remains pivotal in shaping the economic development globally.
“This is especially so for Nigeria, where the bulk of our export earnings is derived from petroleum export. The current challenging global oil market environment provides a unique opportunity for the government to reform the petroleum industry and re-position it as a catalyst for industrial and economic development of Nigeria. Similarly, the industry at large must leverage the low oil price environment to evolve new strategies to improve operational efficiency,” Matemilola said.