President Bola Tinubu is preparing to supervise the first stone laying ceremony of five mini-NGL power plants (liquefied natural gas) in Ajaokuta, in Kogi. This step symbolizes a significant progress in the Nigeria strategy intended to enhance its gas resources and accelerate its energy transition.
Olufi SONEYE, Director of Corporate Communications at the NNPC LTD (National Oil Society of Nigeria), has unveiled the details of this project. He also mentioned other gas and energy installations being finalized, stressing the company’s commitment to modernize the national energy sector.
A refocused energy strategy on gas
Asked about the reasons for this reinforced commitment, Mr. Soneye recalled that Nigeria has natural gas reserves estimated at around 209 billion cubic feet (TCF). “It is therefore imperative to exploit this resource to feed our industries, produce electricity and stimulate economic growth”, he said.
He insisted on the unwavering support of the NNPC LTD to the objectives of the federal government, which aspires to improve the production of electricity, to encourage industrialization and to promote economic development. “Through the country, the use of natural gas has become an urgent need to create industries, provide energy and offer jobs to our youth”he added.
Nigeria-Morocco gas pipeline: a strategic continental project
Another major project is the Nigeria-Maroc (NMGP) gas pipeline, renamed Africa-Atlantic Gazucuc, a regional land and offshore pipeline intended to transport Nigeria natural gas to 13 countries from West and North Africa, And, in the long term, to Europe. “This 5,660 kilometers project, the cost of which is estimated at 25 billion dollars, is essential to combat energy poverty in Africa”said Soneye.
-He also stressed that this link is part of a broader vision to revitalize the industrial and manufacturing sectors along the economic corridors concerned. “By transporting gas to these regions, we create the conditions conducive to the revival of industries, the creation of jobs and economic prosperity”he explained.
Regarding the financial challenges linked to these projects, Mr. Soneye acknowledged that funding constitutes a major issue. “We collaborate with institutions such as the African Export Bank (Afreximbank) and the future African Energy Bank to secure the necessary funds”he said. The NNPC LTD has also implemented incentives, funding facilities and investment prospects to attract partners.
Towards a generalized adoption of compressed natural gas (GNC)
At the same time, the NNPC LTD is involved in compressed natural gas projects (GNC) and Mini-NGL, as part of the presidential initiative for the GNC (PCNGI). “The GNC represents an economic and ecological alternative to traditional fuel, reducing transport costs by 40 % compared to petrol”he said.
Last year, the NNPC LTD inaugurated a mother station from GNC in Ilasamaja (Lagos) as well as 11 stations in Abuja and Lagos. The objective is to deploy an additional 100 this year in collaboration with partners such as Nipco Gas Limited. “These efforts will help diversify the energy mix of Nigeria and reduce transport costs”a conclu M. Soneye.
