The Nigerian National Petroleum Corporation (NNPC) plans to supply about five billion standard cubic feet per day (bcfd) of gas to Nigeria’s domestic market and is hoping it will boost electricity supply to about 15,000 megawatts.
The Chief Operating Officer (COO) Upstream of NNPC, Mr. Bello Rabiu, who spoke the 42nd Society of Petroleum Engineers (SPE) Nigerian Annual International Conference & Exhibition (NAICE) in Lagos, said the corporation plans to use its gas resources to diversify the national economy.
According to Rabiu, NNPC is involved in seven critical gas development projects that will raise gas supply to about 5bcsfd in the next three years.
“With 5bcfd domestic gas supply, Nigeria will have sufficient gas to generate 15GW of power; 7–10mtpa of fertiliser; 10mtpa of other petrochemical; 5mtpa of methanol and 40mtpa of cement,” he said.
The COO said that these measures will lead to the country’s gas market to operate under a “willing buyer – willing seller arrangement”, which according to him will create up to five millions jobs as well as grow Nigeria’s Gross Domestic Product (GDP) between $25 and $40 billion.
This will also lead to the attainment of import substitution that is worth $7 and $8bn, he said.
He also said Nigeria will become a hub for gas-based industries and net exporter of fertiliser, petrochemicals and methanol in a competitive global market which will lead to generation of foreign exchange earnings.
He added, “Nigeria is now well positioned to supply almost 10 per cent of the world’s tradable fertiliser in a few years to come (Dangote, Indorama, Nagarjuna, and Brass).”
The Corporation’s Group Managing Director, Dr. Maikanti Baru, also explained that NNPC’s decision to seek alternative financing models for funding its Joint Venture (JV) obligations has given investors confidence and stimulating more Foreign Direct Investments (FDI) in the oil sector.
He also said that alternative financing has led to improvement in local banks’ participation in the upstream sub-sector of the oil industry.
He said that to turn the wheel of the industry and ensure that funding doesn’t limit our growth, it is important we consider both the traditional and non-traditional funding options.