Nigeria’s $5billion earnings from natural gas has been declared below par, given the huge potential in the sector, the federal government declared yesterday.
Vice President, Senator Kassim Shettima who made the declaration in Abuja, pointed out that Nigeria’s was a mere 40 per cent of what Egypt earns from gas despite the fact that Egypt’s gas reserves is about 30 percent of Nigeria’s.
Speaking during the 6th Valuechain Energy Magazine Annual Lecture & Awards Shettima, who was represented by the special adviser to the President on Energy and Power Infrastructure, Office of the Vice President, Mr. Sodiq Wanka said a lot of investments are needed to grow the gas sector to its full potential.
This is more so as a booming economy built on the exploitation of gas reserves can vastly enhance the fiscal position of the federation, he said.
He warned that if these investments were not made, the gas supply gap in the country could grow to as much as 10 billion scuf feet per day by 2030.
The vice president noted that “the story of Nigeria’s gas riches and potential cannot be complete without understanding that we are far off from that potential and have a lot of work to do, as public sector leaders and as captains of industry.
“Today, Nigeria earns around $5bn from gas production, a figure that is 40 per cent less than in Egypt, which has around 30 per cent of Nigeria’s reserves. Our production to reserve ratio is less than a 3rd of Egypt’s, less than a quarter of Algeria’s and around 10 per cent of Malaysia’s.
“In the aftermath of the Russia-Ukraine war, the EU and many other nations were shopping for LNG at the same time that Nigeria’s largest LNG assets were operating significantly below capacity because the gas supply was inadequate”.
“The impact of truly exploiting the nation’s gas reserves cannot be overstated. Gas is critical to the nation’s power supply, not only accounting for 80 per cent of power generation today, but expected to be the dominant power generation source by the end of this decade. Gas is a critical transition fuel for the country’s ambitious climate targets of being net-zero by 2060.
The number of industries that are gas-based and those that utilise gas for power are many, from fertiliser and methanol to cement and consumer goods,” the VP said.
While expressing government’s determination to ensure that the necessary gas infrastructures were put in place, he added that “one only needs to look at the number of power plants and factories that have built up around the Escravos-Lagos-Pipeline System and its various spurs”, to appreciate the urgency required.
Earlier, the Publisher/CEO Valuechain Media Group, Mr. Musa Bashir Usman called for collaboration amongst industry players and the government to move the sector forward.
He explained that the 6th lecture with the theme: Midstream Gas Development: A Pathway to Energy Transition, seeks to highlight “the critical importance of developing the midstream gas sector as an integral part of our energy transition journey.
“To achieve our energy goals as a nation, we must consciously invest in infrastructure that facilitates the smooth transition of gas production from the upstream value chain to the downstream end.”
In his remarks, the Emir of of Kano, Alhaji Aminu Ado Bayero commended the federal government, the NNPC Limited and others involved in the Ajaokuta-Kaduna-Kano gas pipeline project, pointing out that the project which runs through communities, states and cultures would harness economic linkages along the corridor.
