The Federal Government has declared its intention to invest in and focus on natural gas extraction in the country.
President Muhammadu Buhari said on Tuesday at the 6th Gas Exporting Countries Forum (GECF) Summit in Doha, Qatar, that the Petroleum Industry Act (PIA) was enacted to allow Nigeria to derive more value from natural gas.
According to a statement by Horatius Egua, Senior Adviser to the Minister on Media and Communications, Buhari was represented by Chief Timipre Sylva, Minister of State for Petroleum Resources.
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Buhari stated that the recent enactment of the PIA demonstrated the government’s commitment to extracting more value from natural gas by providing the necessary governance, regulatory, and fiscal framework to support the industry’s growth.
He stated that Nigeria, a gas province with some oil, was committed to long-term growth in natural gas exploitation and utilization, both for domestic consumption and export via LNG and pipeline gas to sub-regional African countries.
Nigeria, according to the president, is launching various initiatives, projects, and policies to improve the performance of the oil and gas sector.
He outlined some of the gas initiatives that Nigeria is currently pursuing, including the National Gas Expansion Program (NGEP).
“The NGEP is intended to provide a framework and policy support for expanding gas supply and utilization in power generation, gas-based industries, and emerging niche gas sectors.”
“Examples include gas in transportation, Liquefied Petroleum Gas (LPG) for cooking, and remote virtual gas supply via trucks transporting LNG and Compressed Natural Gas to gas companies.”
Other initiatives, according to the president, include the Ajaokuta-Abuja-Kano gas pipeline, which will support five billion cubic feet per day of domestic gas usage in the near future, as well as five gigatonnes of power generation.
“The expansion of Bonny’s current LNG production capacity to approximately 30 million tons per year through the ongoing N-LNG Train seven project, as well as the designation of 2021-2030 as the Decade of Gas toward a gas-powered economy.”
“Not only would this reduce Nigeria’s – Gas (GHG) emissions, but it would also reduce the country’s import bills.”
The President noted that, with natural gas expected to be the leading fossil fuel in the energy transition, the GECF, with its vast experience, was well-positioned to provide a credible platform to promote natural gas as a sustainable fuel for an effective energy transition.
“As a result, we must continue to assess the gas and energy market dynamics in the short, medium, and long term time frames in order to capitalize on market opportunities and collectively address challenges,” he said.
To achieve the goals set, he emphasized the importance of working together as policymakers, investors, decision-makers, researchers, and technology developers to make modern energy sources, such as natural gas, available and affordable to all.
While reiterating Nigeria’s commitment to the Conference of Parties (COP26) Glasgow declaration of zero carbon emissions; Buhari emphasized the importance of natural gas for an effective energy transition to a low-carbon future.
He also emphasized the importance of natural gas as a fuel for socioeconomic development, citing its attributes as the most abundant, flexible, and cleanest fossil fuel, as well as its versatility.
