Group chief executive officer (GCEO), Nigerian National Petroleum Company (NNPC) Ltd, Mele Kyari, has said the company will utilise Nigeria’s abundant gas resources to revolutionise the nation’s power and industrial sector.
Kyari said this in Abuja at a Shareholders Agreement signing between the NNPC Ltd.,UTM Offshore (an indigenous company) and Delta State government, on the development of the first Floating Liquefied Natural Gas (FLNG) facility in Nigeria.
He said in a statement that gas would be used to bring revolution in Nigeria in the next two to three years as they were already progressing on the initiatives to bring gas to 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 collateral values this will create,” the GCEO said.
Describing the FLNG project as a task that must be done, Kyari said Nigeria’s abundant gas resources have been under-utilised, adding that the new focus would monetise such gas resources for national and global benefit.
According to him, the FLNG Project clearly fits into the federal government’s gas aspirations under the Decade of Gas Initiative and in line with Mr President’s agenda to create a gas hub to maximise value for prosperity.
Reiterating NNPC Ltd.’s commitment towards the project, Kyari said the FLNG was the first of its kind that the company was taking keen interest in.
Kyari also said NNPC Ltd. had equity in the project.
“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 deliver this project on schedule and at the best possible cost,” the GCEO added.
Earlier in his remarks, the group managing director of UTM Offshore Limited, Julius Rone, described the agreement execution as another significant milestone in actualising Nigeria’s first indigenous FLNG.
He commended President Bola Tinubu for his dedication towards developing the Nation’s gas resources, as exemplified in the recently held COP28 Conference in Dubai, UAE.
He also lauded the GCEO of NNPC Ltd for his leadership and commitment in ensuring that Nigeria’s gas resources were developed within the provisions of the Petroleum Industry act (PIA) 2021.
Also speaking, the governor of Delta State, Sheriff Oborevwori , said that the Delta State Government, which had 40 per cent of Nigeria’s proven gas reserves, decided to take eight per cent equity on the project.
This, he said, was because of the company’s conviction of the strategic importance of the project to the national economy.
The governor said that apart from producing over 300,000 metric tonnes of LPG (cooking gas) which would be dedicated to the domestic market, the FLNG project would also help to mitigate environmental hazards in the Niger Delta.
Oborevwori said the FLNG would reduce gas flaring, create ample employment opportunities and ensure 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 shareholding agreement was the minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who said FLNG would ensure monetisation of Nigeria’s gas resources to drive the economy and attain energy security.
The executive vice president, Gas, Power and New Energy, Olalekan Ogunleye, spoke briefly on the project and lauded the federal government for its belief in the ability of gas to drive and accelerate economic growth.
The FLNG facility is expected to produce 1.81 to 2.72 metric tonnes of gas per annum (mtpa).
Its project equity has NNPC Ltd., UTM Offshore and the Delta State Government holding 20 per cent, 72 per cent and eight per cent stakes respectively.