…We’ll use gas to revolutionise Nigeria’s Power, Industrial Sectors –Kyari
BY SAM OTUONYE
Nigerian National Petroleum Company Ltd. (NNPC Ltd.), UTM Offshore (an indigenous company), and Delta State Government have on Tuesday signed a Shareholders Agreement (SHA) on the development of the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria.
According to a press statement by Olufemi Sonoye, Chief Corporate Communications Officer of NNPC Ltd, the FLNG facility is expected to produce 1.81 to 2.72 metric tonnes per annum
(mtpa) of gas with equity shareholdings by NNPC Ltd., UTM Offshore, and the Delta State Government of 20%, 72%, and 8%, respectively.
Disclosing the importance of the Agreement on Nigeria’s gas economy during a signing ceremony, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum
Company (NNPC Ltd.), Mr. Mele Kyari, said the company will utilise
Nigeria’s abundant gas resources will revolutionize the nation’s power and
industrial sectors.
“In the next 2-3 years, we will use gas to bring about a revolution in our
country. The outcomes will be clear on the table; there will be prosperity, and
value will be created. Not just creating gas for export but progressing on all
our initiatives of bringing gas into the domestic market. Our backbone
Infrastructure is almost ready to ensure we achieve that. Once that
happens, we will see the immediate impact on the power sector, gas-based
industries and several other collateral values that this will create,” the GCEO
stated.
Describing the FLNG project as a task that must be done, Kyari said Nigeria
is a gas country whose abundant gas resources have been underutilized. He
stressed that the new focus is to monetise such gas resources for the benefit of the country and the world.
He said the FLNG Project clearly fits into the Federal Government’s gas
aspirations under the Decade of Gas Initiative and in line with Mr. President’s clear agenda to create a gas hub so that value can be maximised, and
Nigeria achieves the prosperity that it deserves.
Reiterating NNPC Ltd.’s commitment towards the project, Kyari said the
FLNG was the first of its kind that the company was taking keen interest and
holding an equity in.
“More than this, there are several Floating LNGs that we are promoting.
including fixed LNG projects. We are happy to collaborate with the Delta
State Government. We will take practical steps to get it done. We are
committed to delivering this project in time, on schedule and in the best
possible cost,” Kyari added.
Earlier in his remarks, the Group Managing Director of UTM Offshore Limited, Mr. Julius Rone described the SHA execution as another significant
milestone in actualizing Nigeria’s first indigenous FLNG.
He thanked President Bola Tinubu for his dedication towards developing the
Nation’s gas resources, as exemplified in the recently held COP28
Conference in Dubai, UAE, where the President made a commitment for the
complete flare-down and use of Nigeria’s gas resources as a transition fuel
to achieve the global transition to cleaner energy fuels and reduce methane emission in oil and gas operations.
He also lauded the GCEO of NNPC Ltd for his leadership and commitment
in ensuring that Nigeria’s gas resources are developed within the provisions
of the Petroleum Industry act (PIA) 2021.
Also speaking, the Governor of Delta
State, Rt. Hon. Sheriff Oborevwori said
that the Delta State Government, which has 40% of Nigeria’s proven gas
reserves, decided to take 8% equity because of its conviction of the strategic importance of the project to the national economy.
Apart from producing over 300,000 metric tonnes of LPG (cooking gas)
which will be dedicated to the domestic market, the Governor said the FLNG
project will also help to mitigate the environmental hazards in the Niger
Delta by reducing gas flaring; creating ample employment opportunities and ensuring the switch from kerosene and firewood to cleaner energy, thus
improving the health and general wellbeing of the people.
In attendance to witness the execution of the SHA was the Honourable
Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, who said the FLNG will ensure the monetisation of Nigeria’s gas resources to drive the economy and attain energy security.
Speaking briefly on the project, the Executive Vice President, Gas, Power &
New Energy, Mr. Olalekan Ogunleye lauded the Federal Government for its
belief in the ability of gas to drive and accelerate economic growth which
has been exemplified by the initiative to create a gas economy, especially
through the Decade of Gas.