The Nigerian National Petroleum Corporation (NNPC) has assured that the demand for natural gas in Nigeria is expected to reach 5.5 trillion standard cubic feet per day by 2016,
By its projection, the power sector is expected to consume over 72.7 per cent of the aggregate gas demand, which is about 4 trillion scf/d.
The remaining 1.5 trillion scf/d demand would be targeted at demands outside the power sector.
The Nigerian National Petroleum Corporation (NNPC) has assured that the demand for natural gas in Nigeria is expected to reach 5.5 trillion standard cubic feet per day by 2016,
By its projection, the power sector is expected to consume over 72.7 per cent of the aggregate gas demand, which is about 4 trillion scf/d.
The remaining 1.5 trillion scf/d demand would be targeted at demands outside the power sector.
Figures from the Gas and Power division of the NNPC, showed that about 1.4 trillion scf/d would likely be for existing power sector demand, 0.85 trillion scf/d for ongoing power project gas demand, 0.3 trillion scf/d for planned joint venture Integrated Power Project gas demand, and about 1.5 trillions cf/d for planned IPPs gas demand.
In implementing the infrastructure blueprint for gas, our correspondent learnt, 2012 and 2013 would focus on reinforcing the East gas infrastructure, as well as connecting the East, West and North frameworks.
By the programme of the NNPC, 2010 and 2011 were the period set aside to reinforce the Western grid.
In less than four years from now, the country is expected to have attained a robust infrastructural delivery for gas supply, full elimination of wasteful flares, viable commercial framework for the Nigerian gas market, a focused kick-off of gas industrialisation, and ultimate gas supply growth.
In the short term, that is 2012, the country is expected to have stabilised existing supply and achieved gas plant potential. This is to cover Ughelli gas plant repairs and Utorogu workover, unlocking of stranded volume and bottlenecks, Escravos-Lagos Pipeline System completion via Federal Government intervention, the completion of Olorunshogo pipeline, and the exploration of short-term opportunities for additions.
In the medium term, that by 2013/2014, the country should expedite Ob/Ob – Oben pipeline delivery to enable excess gas in the east to be used in west.
In the longer term, which is by 2015 and above, Nigeria should be accelerating high impact gas supply projects like the Assa North (1 billion scf/d); Erha GFD (400 million scf/d); Utorogu expansion (300 million scf/d; and Odidi (350 million scf/d).
Currently, Nigeria is flaring about 15 per cent of its 7.8 billion cubic feet gas wells production per day. This amounts to 1.2bcf per day, which is worth over $1bn (N157bn) annually.
According to the Group Executive Director, Gas and Power, NNPC, Dr. David Ige, the country is currently exporting 41 per cent of its Liquified Natural Gas, which is 3.2 billion scf/d, and is re-injecting 32 per cent of its production, which is 2.5 billion scf/d.
Twelve per cent of the country’s LNG, he noted, was consumed domestically, which is about 0.9bcf per day for power and industrial uses.
In realising the country’s aspiration for the LNG market, the gas expert had said a five-pronged approach was being considered. These, he noted, included a robust infrastructure delivery; gas supply growth; elimination of wasteful flares; viable commercial framework; and a focused kick-off of gas industrialisation.
By the end of 2012, the NNPC is expected to have reinforced Eastern network and commenced opening of Northern axis.
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