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.
