As part of efforts aimed at improving electricity generation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) recently partnered some of the country’s major oil exploration companies to work together on the “Seven Critical Gas Development Projects” which will enable Nigeria produce some 15,000 megawatts of electricity in two years’ time.
Some of the oil companies partnering on the project are Oando Plc, Shell Petroleum Development Company, Nigerian Agip Oil Company (NAOC), etc.
The critical gas project, which is worth some $3.7 billion, will guarantee that about 3.4 billion cubic feet of natural gas are delivered per day.
It will also ensure that Nigeria’s abundant gas reserves are put into good use towards the improvement of the country’s struggling electricity sector.
Meanwhile, the Nigerian Agip Oil Company Joint Venture is expected to be responsible for unlocking nearly 50% of the 42 trillion cubic feet of gas which the partnership aims to deliver by 2020. The Chief Operating Officer of Oando Plc, Dr Ainojie Irune, disclosed this while speaking at an event marking the commencement of the partnership.
Note that Oando Plc is part of the Nigerian Agip Oil Company Joint Venture.
“The company’s focus was to ensure that indigenous companies play an integral role in creating the new Nigeria; a Nigeria where as a result of our combined efforts we are driving industrialisation, driving the commercial use of gas, and ultimately creating and enhancing value for the nation. The NAOC Joint Venture (JV) of which Oando is a part of will be responsible for unlocking almost 50% of the 42 trillion cubic feet that the 7-Critical Gas Development Projects aims to deliver by 2020.” – Irune
Irune acknowledged the crucial role crude currently plays in the economy, noting that majority of the companies in Nigeria depend mainly on diesel for their energy needs. But that notwithstanding, he stated that gas utilisation will ensure reduced costs and ultimately improve the country’s Gross Domestic Product.
The Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr Maikanti Baru, had also noted that partnering the oil companies on the gas project will ultimately close the existing gap between demand and supply in the Nigerian gas market.
He also noted that the domestic demand for gas is growing exponentially, outpacing the supply rate. What this means, therefore, is that more needs to be done to meet the demand.
Meanwhile, the partnership will also, among other things, entail the development of some oil fields, including the 4.3 trillion cubic feet Assa North/Ohaji South Field, the 6.4 Tcf Unitised Gas fields, and the 7Tcf Oil Mining Leases 26, 30 and 42 belonging to the Petroleum Development Corporation.