Economy

“WE’LL USE GAS TO BRING ABOUT REVOLUTION IN NIGERIA’S POWER, INDUSTRIAL SECTORS” SAYS KYARI

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…AS NNPC LTD., UTM OFFSHORE, DELTA STATE SIGN SHAREHOLDERS AGREEMENT ON FLOATING LNG

The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Ltd., Mr. Mele Kyari, has said that the company will utilise Nigeria’s abundant gas resources to revolutionize the nation’s power and industrial sectors.

Kyari disclosed this during a signing ceremony of a Shareholders Agreement (SHA) between the NNPC Ltd., UTM Offshore (an indigenous company), and the Delta State Government on the development of the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria, held at the NNPC Towers in Abuja, on Tuesday.

“In the next 2-3 years, we will use gas to bring about a revolution in our country. The outcomes will be clear on the table; there will be prosperity, and value will be created. Not just creating gas for export but progressing on all our initiatives of bringing gas into the domestic market. Our backbone infrastructures are almost ready to ensure we achieve that. Once that happens, we will see the immediate impact on the power sector, gas-based industries, and several other collateral values that this will create,” the GCEO stated.

In a statement by the Chief Corporate Communications Officer, NNPC Ltd., Olufemi O. Soneye, Kyari while describing the FLNG project as a task that must be done, said Nigeria is a gas country whose abundant gas resources have been under-utilised. He stressed that the new focus is to monetise such gas resources for the benefit of the country and the world.

He said the FLNG Project fits into the Federal Government’s gas aspirations under the Decade of Gas Initiative and in line with Mr. President’s clear agenda to create a gas hub so that value can be maximised, and Nigeria achieves the prosperity that it deserves.

Reiterating NNPC Ltd.’s commitment towards the project, Kyari said the FLNG was the first of its kind that the company was taking a keen interest in and holding equity in.

“More than this, there are several Floating LNGs that we are promoting, including fixed LNG projects. We are happy to collaborate with the Delta State Government. We will take practical steps to get it done. We are committed to delivering this project in time, on schedule, and at the best possible cost,” the GCEO added.

Earlier in his remarks, the Group Managing Director of UTM Offshore Limited, Mr. Julius Rone described the SHA execution as another significant milestone in actualizing Nigeria’s first indigenous FLNG.

He thanked President Bola Tinubu for his dedication towards developing the Nation’s gas resources, as exemplified in the recently held COP28 Conference in Dubai, UAE, where the President made a commitment to the complete flare-down and use of Nigeria’s gas resources as a transition fuel to achieve the global transition to cleaner energy fuels and reduce methane emission in oil and gas operations.

He also lauded the GCEO of NNPC Ltd for his leadership and commitment to ensuring that Nigeria’s gas resources are developed within the provisions of the Petroleum Industry Act (PIA) 2021.

Also speaking, the Governor of Delta State, Rt. Hon. Sheriff Oborevwori said that the Delta State Government, which has 40% of Nigeria’s proven gas reserves, decided to take 8% equity because of its conviction of the strategic importance of the project to the national economy.

Apart from producing over 300,000 metric tons of LPG (cooking gas) which will be dedicated to the domestic market, the Governor said the FLNG project will also help to mitigate the environmental hazards in the Niger Delta by reducing gas flaring; creating ample employment opportunities and ensuring the switch from kerosene and firewood to cleaner energy, thus improving the health and general wellbeing of the people.

In attendance to witness the execution of the SHA was the Honourable Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo, said the FLNG will ensure the monetisation of Nigeria’s gas resources to drive the economy and attain energy security.

Speaking briefly on the project, the Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye lauded the Federal Government for its belief in the ability of gas to drive and accelerate economic growth which has been exemplified by the initiative to create a gas economy, especially through the Decade of Gas.

The FLNG facility is expected to produce 1.81 to 2.72 metric tons per annum (mtpa) of gas. The project equity has NNPC Ltd., UTM Offshore, and the Delta State Government holding 20 percent, 72 percent, and 8 percent stakes respectively.

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