October, 16
NNPC Signes Virtual Gas Pipeline System Contract
The Nigerian National Petroleum Corporation (NNPC) sealed a deal with a private firm for the activation of virtual gas pipeline network for power generation.
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The project, which would be facilitated through the installation of Mini-liquefied Natural Gas (LNG) plants, is designed to supply, in the first instance, about 84 million standard cubic feet of gas per day (mmscf/d) by transporting gas from production fields using customized cryogenic tankers to areas that are not easily accessible through pipelines.

In his remarks at the 11th Nigerian Gas Association International Conference and Exhibition in Abuja Monday, the Group Managing Director of the NNPC, Dr. Maikanti Baru, said the innovative gas supply technique would also further develop Nigeria's energy sector and consequently help revitalise the manufacturing, textile and housing sectors through provision of the much needed affordable energy source.

Speaking about gas development in the country, Baru stated that the nation's current proven gas reserve was about 202 trillion cubic feet (TCF) up from the initial figure of 199TCF with a potential for up to 600TCFin undiscovered resources.

According to him, Nigeria has almost 10 times the Trinidadian reserves base and is 9th in the world based on proven gas reserves and that with the undiscovered potential, Nigeria could be in the same league as Iran, Qatar and Russia.

In terms of production, the NNPC GMD disclosed that current average gas production is in the region of 8.5bscfd. Of this volume about 3.7bscfd (43 per cent of total gas production) is exported, 2.7bscfd (32% of total gas production) is used upstream for gas re-injection/gas-lift, 1.5bscfd (18% of total gas production) is used domestically for power and industries, while the balance of 0.6 bscfd (7 per cent of total gas production) is currently being flared.

He noted that, going forward NNPC has developed a clear cut strategy for growing gas supply to meet the unprecedented growth in gas demand.

"Our plan is to connect all the stations through pipelines to bring Liquefied Petroleum Gas (LPG) closer to consumers," he said.

He called on members of NGA to join forces with the NNPC and other stakeholders to ensure complete attainment of the Federal Government's aspiration for the gas sub-sector.