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Gas will transform power, industrial sectors

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By Okunloye Abiodun

NNPC Ltd., UTM Offshore, and Delta State Government form Shareholders Agreement.

Mr. Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Ltd, expressed the intention to utilise Nigeria vast gas reserves as a means to transform the country’s power and industrial sectors. On Tuesday, in Abuja at the NNPC Towers, Kyari unveiled the interesting declaration while participating in the signing ceremony of a Shareholders Agreement (SHA) which was focused on the development of Nigerian inaugural Floating Liquefied Natural Gas (FLNG) facility. The agreement involved NNPC Ltd., the indigenous company UTM Offshore, and the Delta State Government.

Over the course of the upcoming 2-3 years, a gas-based revolution is set to transform the nation, yield tangible results, and foster prosperity and value. This revolutionary endeavour extends beyond mere exportation, as it encompasses all their efforts to integrate gas into the domestic market. The foundation for their imminent success lies in their near-completion backbone infrastructure, which will ensure the realisation of their ambitions. The GCEO highlighted that the power sector, gas-based industries, and various other connected values will witness an instant influence as soon as this occurrence takes place.

Untapped potential resources will be used for the nation’s greater good.

Kyari’s words portray the FLNG project as an imperative endeavour, highlighting Nigeria’s gas-rich status and the untapped potential of its abundant resources. The objective now lies in capitalising on these resources for the greater good of the nation and the global community. By aligning with the Federal Government’s gas ambitions under the Decade of Gas Initiative, the FLNG Project seamlessly integrates into this vision. The President has a well-defined plan in place to establish a gas hub, thus ensuring that Nigeria attains the level of prosperity it rightly deserves with maximised value.

Kyari emphasised the dedication of NNPC Ltd. to the project, highlighting their enthusiastic involvement and investment in this unique FLNG endeavour. Additionally, NNPC is actively promoting a variety of floating LNG and fixed LNG projects. The company is delighted to collaborate with the Delta State Government and is prepared to pursue the necessary actions to accomplish these endeavours successfully and proactively. The GCEO emphasised their dedication to ensuring the timely completion of this project, adhering to the planned timeline and at the most optimal expense.

SHA is a notable achievement in the FLNG project.

In his earlier remarks, Mr. Julius Rone, the Group Managing Director of UTM Offshore Limited, characterised the implementation of the SHA as a notable achievement in the realisation of Nigeria inaugural indigenous FLNG project. President Bola Tinubu’s unwavering commitment to developing the country’s gas resources was acknowledged and appreciated. This was evident during the esteemed COP28 Conference in Dubai, UAE. The President boldly pledged to eliminate flaring and utilise Nigerian abundant gas resources as a transitional fuel. His vision is to contribute to a global shift towards cleaner energy alternatives and significantly diminish methane emissions within the oil and gas sector. The GCEO of NNPC Ltd leadership and dedication to developing the resources in accordance with the Petroleum Industry Act (PIA) 2021 were also greatly appreciated.

Additionally, the Governor of Delta State, Rt. Hon. Sheriff Oborevwori expressed that the Delta State Government recognised the immense value of the project to the national economy, given its possession of 40% of Nigerian verified gas reserves. Consequently, the government consciously decided to obtain an 8% equity stake in the endeavour. In addition to generating more than 300,000 metric tonnes of cooking gas exclusively for the local market, the Governor emphasised that the FLNG project would play a crucial role in addressing the environmental risks in the Niger Delta region by minimising flaring. Furthermore, the venture would foster abundant job prospects and facilitate the transition from kerosene and firewood to cleaner energy sources, enhancing the overall health of the populace.

Economic growth will be stimulated with valuable assets,

Present at the SHA execution was Rt. Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), emphasised that implementing FLNG will effectively convert Nigeria gas reserves into valuable assets, stimulating economic growth and establishing energy stability. Mr. Olalekan Ogunleye, Executive Vice President of Gas, Power & New Energy, spoke briefly about the project and praised the Federal Government for believing in gasses power to boost economic growth. He pointed out that the initiative to build a gas economy, mainly through the Decade of Gas, is an ideal instance. The production estimation for the FLNG facility ranges from 1.81 to 2.72 metric tonnes per year (mtpa). Dividing the project equity, NNPC Ltd., UTM Offshore, and the Delta State Government hold 20%, 72%, and 8% stakes, respectively.

Related Link

NNPC: Website

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2 months ago

Gas will transform power, industrial sectors.NNPC Ltd., UTM Offshore, and Delta State Government form Shareholders Agreement. – Express your point of view.

Adeoye Adegoke
2 months ago

That’s fantastic news! The shareholders agreement between NNPC Ltd., UTM Offshore, and the Delta State Government holds great potential for transforming the power and industrial sectors in Nigeria. The utilization of gas can have a significant positive impact on these sectors.
Gas is a clean and abundant energy source that can help address the power challenges in Nigeria. By leveraging gas resources, we can enhance electricity generation, reduce reliance on fossil fuels, and promote a more sustainable and environmentally friendly energy mix. This can lead to improved access to electricity for both urban and rural areas, which in turn can drive economic growth and improve the quality of life for Nigerians.
The shareholders agreement signifies a collaborative effort to harness the potential of gas and unlock its benefits for the Nigerian economy. It’s an exciting step towards building a more sustainable and prosperous future for the country.
I’m thrilled to see the positive impact that this agreement can have on the power and industrial sectors. It’s a testament to the commitment of all parties involved to drive positive change and unlock the immense potential of gas in Nigeria. 🌬️🔌🏭

2 months ago

This partnership has the ability to support the expansion of these industries and result in favorable improvements. We may anticipate more energy output and more efficiency when gas is utilized. For Nigeria’s energy landscape, this is an encouraging development.Our ability to produce more electricity, rely less on fossil fuels, and advance a more ecologically friendly and sustainable energy source can all be improved by utilizing gas resources.

2 months ago

Power and industrial sectors will change due to gas. The shareholders’ agreement is formed by NNPC Ltd., UTM Offshore, and the Delta State Government.The production of energy greatly depends on gas. As long as we use energy properly, the power sector will reach its maximum efficiency level.

1 month ago

The plans to leverage our abundant gas reserves for the FLNG project are truly exciting. This initiative, involving NNPC, UTM Offshore, and the Delta State Government, holds immense potential to transform our power and industrial sectors. The focus on integrating gas into the domestic market aligns with our national goals, and the project’s economic and environmental benefits are promising. I look forward to witnessing the positive impact on our country’s development.