Decade of Gas: FG Restates Investment in 215 Projects Exceeded $8bn in 18 Months

•Stakeholders to accelerate action for additional 4.7bcf gas output

Peter Uzoho

The federal government has reiterated that Nigeria’s ‘Decade of Gas’ programme spanning 2021-2030 has so far unlocked about 215 strategic upstream and midstream gas projects worth over $8 billion investments in the last 18 months, with additional $20 billion expected in the coming years.

Special Adviser to the President on Energy, Olu Verheijen, said this  in Lagos at the opening session of the ‘Gas Utilisation Unlocked Validation Series’, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Decade of Gas Secretariat.

The federal government under the leadership of the late former President Muhammadu Buhari had in March 2021 declared January 1, 2021 to December 31, 2030 as Nigeria’s Decade of Gas, a period expected to accelerate the country’s gas production.

The period was also to be used to tackle energy poverty, industrialise, create jobs, lift 100 million Nigerians out of poverty and ultimately set the economy on the path of prosperity

Speaking at the session, Verheijen, who was represented by the Team Lead on Gas at her office, Mr. Lateef Biobaku, said promoting the ease of doing business for the private sector remains one of the most critical responsibilities of the President Bola Ahmed Tinubu’s administration.

“In just 18 months, we have unlocked projects whose value exceeds $8 billion. And we have a very clear line of sight to another $20 billion ahead of us in the next few years as we work with the operators to progress the maturation of their portfolio projects”, Verheijen stated.

By bringing project developers, regulators and other stakeholders into the scenario, she said the series focuses on solutions to unlocking more gas from the upstream sector and pushing it down to the domestic market for local use.

Specifically, she said the solution entails working collaboratively with relevant stakeholders both public and private to identify constraints and accelerate decisions that move projects from concept to execution.

Affirming that Nigeria’s gas potential was self-evident, the presidential aide added that as the holder of Africa’s largest gas reserves, the nation has in recent years intensified efforts to harness this abundance more fully.

Through the Decade of Gas Initiative, she said the government was demonstrating its  determination to position Nigeria as a global gas leader and to deploy gas as a catalyst for national and regional development. According to her, under the leadership of the President, significant milestones have been achieved.

These achievements she listed include: Fiscal reforms delivering competitive incentives across the value chain, the Presidential Compressed Natural Gas (CNG) Initiative, and the numerous tax waivers for clean energy solutions, such as for CNG, Liquefied Natural Gas (LNG), electric vehicle, and LNG processing and distribution.

Verheijen further said: “Equally encouraging to us is the progress made on the Nigeria LNG Stream 7 project. Not only in the pace of construction, despite all the numerous challenges that we have encountered, but also in securing feedstock supply, evidenced by the recent signing of a 20-year gas supply agreement with six upstream producers.

“It is our desire to see many more gas utilisation projects such as this, both export as well as for domestic use, seeing them progress to completion and positively impacting on our economy.

“Every additional gas molecule produced, every processing and distribution facility established, every gas-fired power plant and vehicles deployed represent progress for our people and a step forward in our collective development journey.”

She noted that the ‘Gas Demand Unlocked Series’, dedicated to fostering an enabling environment that translates gas investment ambition into tangible action, was therefore both timely and essential.

She said her office remains fully committed to supporting the NMDPRA and all other stakeholders in ensuring lasting success.

Delivering his keynote address, the Minister of State for Petroleum Resources (Gas),  Ekperikpe Ekpo, who spoke virtually, said Nigeria was on course to increasing gas production by an additional 4.7 billion cubic feet per day by 2030.

He said aligning with the ambitions of the Decade of Gas Initiative, it was imperative that stakeholders collaborate to guarantee that projects utilising this increased output—both domestic and export-oriented—were prepared within the specified timeframe.

Ekpo stated that Nigeria possesses sufficient gas resources to address both markets. He said under the leadership of  Tinubu, the ‘Renewed Hope Agenda’ has placed energy, particularly gas, at the core of Nigeria’s national renewal efforts.

He maintained that the President’s vision was to leverage Nigeria’s gas resources for industrialization and sustainable growth.

According to the minister, gas stands at the intersection of economic opportunity and responsibility, powering industry and homes today while forging a path to a more sustainable future.

Through considered policy measures, including infrastructure development, price reforms, and investment incentives, Ekpo noted that the current administration aims to ensure gas fulfills three transformative roles including enhancing productivity across industries, small and medium enterprises (SMEs), and manufacturing zones.

Others he listed were facilitating energy transition by replacing high-carbon fuels with cleaner gas alternatives and boosting competitiveness by establishing Nigeria as a regional leader in gas trading and energy innovation.

In achieving these objectives, Ekpo said the government was providing not only energy but also renewed hope through actionable progress. He said to promote alignment and accountability, the Decade of Gas Sponsors Group has been established as the principal governance and coordination body.

Earlier in his welcome address, Chief Executive of the NMDPRA, Farouk Ahmed, disclosed that between July and August this year, the Decade of Gas Secretariat reviewed 215 gas utilization projects from the consolidated demand databases shared by key industry stakeholders and Individual project sponsors.

He revealed that “an aggregate potential gas demand of 30bscfd of gas was established for those projects.”

Ahmed said a further analysis of the presented projects using more rigorous ranking criteria revealed that 70 projects, with a potential demand of 15 bscfd, were top priority projects that can effectively be developed to promote the goals of the decade of gas initiative. He added that an evaluation of the appropriate ‘unlock opportunities’ required to develop the identified top priority projects established that the following systemic barriers, namely infrastructure gaps, regulatory overlaps and market uncertainties were key constraints that have to be resolved