Last week, stakeholders in the nation’s oil and gas industry gathered to deliberate on the prospect of domestic gas utilisation in the country under the umbrella of the Society of Petroleum Engineers (SPE). The Oloibiri Lecture Series & Energy Forum 2017 Edition focused on the how the nation could turnaround the its economy with natural gas. FESTUS OKOROMADU reports the views of key speakers.
The minister of state for petroleum resources, Dr. Ibe Kachikwu, has repeatedly reassured Nigerians of his commitment to reform the Nigerian oil and gas industry, stressing that such effort would require innovative thinking, new ideas, technology and partnership among various stakeholders.
In the light of such thinking many stakeholders in the industry has in recent times, continued to meet to proffer solutions to the challenges facing the industry in particular and the nation in general.
At every of such gathering, one cannot but accept the fact that Nigerians are indeed thinkers and they truly knows where the problems lays and can proffer solution. However, what appears to be missing is the political will to implement solutions proffered at such meetings.
The Oloibiri Lecture Series & Energy Forum was no less different, as it is a gathering of stakeholders in the industry with a view to identifying a challenge and striving to offer solutions. The lecture which was organised by the Society for Petroleum Engineers (SPE) focused the 2017 edition on the domestic gas sector with the theme: “Domestic Gas Utilisation In Nigeria: From Producers to User.”
Delivering the keynote address, Group managing director, Nigerian National Petroleum Industry (NNPC), Dr. Maikanti Baru, noted that natural gas has unprecedented potential to impact positively on the economy of any nation that is endowed with it. He stated that as a fuel, it burns cleaner and has become the fuel of choice for power globally. As feedstock, it is able to catalyse major industrial growth through fertiliser, petrochemicals and other related gas-based industries.
Baru noted that countries which have chosen to harness this commodity successfully have recorded huge benefits from such adventures. He cited example of Trinidad & Tobago (T&T) which achieved over a fourfold growth in gross domestic product (GDP) as well as Qatar which is one of the world’s highest GDP per capita country. Both countries according to him, became successful due largely to effective utilisation of their natural gas resources.
Speaking on the Nigeria’s potentials, Baru said the nation’s natural gas reserves qualifies it to be in the league of these successful nations.
He stated that with 192 trillion cubic feet (TCF) of proven gas reserves, Nigeria is ranked 9th in terms of size of proven plus probable (2P) reserves almost 6 times Trinidad’s reserve base and almost at par with Saudi Arabia – both of which have catalyzed a major industrialisation platform from gas.
He further explained that the US Geological Survey estimates revealed that gas reserves potential in Nigeria could be as high as 600 TCF if properly explored. This presents huge potential for growth.
According to Baru the year 2002 marked the turning point in the history domestic gas demand as the market became driven by the power sector. He stated that the net result was that gas demand in the industrial and commercial sectors has historically remained well below its considerable potential.
Baru stated that the NNPC under his management was addressing the challenges through an agenda tagged the ‘12 Business Focus Areas (12BUFA) Initiative.’ The strategic plan, he stated, was targeting the increase of domestic gas supply to 5bscfd by year 2020.
He noted that beyond growing gas for the power sector, there had been a strategic positioning of the sector to support massive gas based industrialisation. He added that the intent was to position Nigeria as the regional hub for gas-based industries such as fertiliser, methanol and petrochemicals among others.
“The first of this effort is the planned 30 square kilometres Gas Revolution Industrial Park in Delta State. This will be Africa’s largest purpose built gas Industrial park supporting gas based industries,” he stated.
However, president, Nigerian Gas Association and Managing Director, Frontier Oil Limited, Mr Dada Thomas, lamented that Nigeria had not been able to harness its God-given gas resources optimally for domestic use.
According to him, the country is only tapping a little amount of the gas it has, with the bulk of it being utilised by the power plants within a poorly regulated power value chain system that is threatening to bankrupt everybody in that value chain.
The question is when will these strategic meeting produce the need turnaround that will cause the harnessing of this abundant resource to the benefit of all, as it is the case with other countries like Trinidad & Tobago and Qatar.