THE Nigeria National Petroleum Corporation (NNPC), on Monday, disclosed that over 500 km pipelines have been completed and commissioned in the last eight years which were currently delivering gas to the nation’s power plants and industries.
The Group Managing Director (GMD) of the corporation, Dr Maikanti Baru disclosed this in Abuja while delivering his keynote address at this year’s Nigeria Gas Association International Gas Conference & Exhibition.
Some of the completed pipelines, according to him, include the Oben-Geregu (196 km), Escravos-Warri-Oben (110 km), Emuren-Itoki (50 km), Itoki-Olorunshogo (31 km), Imo River-Alaoji (24 km) and Ukanafun-Calabar pipeline (128 km).
He further stated that the corporation was also currently completing the construction of the strategic 48inches by 130km Obiafu-Obrikom-Oben (OB3) East-West Interconnection pipeline would deliver 2Bscfd of gas, which would be commissioned early 2019.
Dr Baru said the expansion of the existing Escravos to Lagos Pipeline (ELPS) which is to double the installed capacity of ELPS from 1.1Bscfd to 2.2Bscfd would be commissioned by the end of this year.
He said: “In Nigeria, gas, unlike oil, has a significant impact on the GDP. Gas creates linkages with other sectors of the economy such as agriculture, industry and power. Gas penetration is key to enhancing the industrial growth of the transit towns and villages.
“A classic example in Nigeria is the Escravos to Lagos gas Pipeline System (ELPS). This gas pipeline is responsible for the proliferation of power plants, gas-based industries, cement companies, fertilizer plants to mention a few clustered around the pipeline system. It then means that expansion of gas pipeline can influence economic growth and serve as a catalyst for Nation building.
“We identified key gas development projects to forestall any shortfall at least in the medium term. This we termed the “Seven Critical Gas Development Projects (7CGDP).” These projects are an integral leg of the gas development strategy designed to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.
“The Seven Critical Gas Development Projects include – the 4.3 trillion cubic feet (Tcf) Assa North/Ohaji South field; the 6.4 Tcf Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri), the 7 Tcf NPDC’s OML 26, 30 and 42, the 2.2 Tcf Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company, the cluster development of 5Tcf in OML 13 to support the expansion of Frontier E & P Uquo Gas Plant; and the cluster development of 10 Tcf Okpokunou/Tuomo West in OMLs 35 and 62),” He stated.
Dr Baru said these projects were expected to deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium-term supply gap by 2020 on an accelerated basis.
The GMD explained that the projects would not only bridge the projected shortfall in supply upon completion but would also signal the beginning of the process of closing the demand-supply gap in the domestic gas market. It is important to reiterate that we cannot achieve our collective growth aspiration without gas.
“Our current average gas production is in the region of 8.5Bscfd. Of this volume, about 43 percent – 3.7Bscfd is exported, 32 percent – 2.7Bscfd is utilized for gas re-injection/gas-lift, 18 percent -1.5Bscfd is used domestically for power and industries while the balance of 7 percent – 0.6Bscfd is unfortunately being flared,” He added.
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