The
Group Chief Executive Officer (GCEO), Nigerian National Petroleum Company
(NNPC) Ltd., Mr Mele Kyari has said the company will utilise Nigeria’s abundant
gas resources to revolutionise the nation’s power and industrial sectors.
Kyari spoke
in Abuja at a Shareholders Agreement (SHA) 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, Mr Julius
Rone, described the SHA 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 SHA was the Minister of State for
Petroleum Resources (Gas), Mr Ekperikpe Ekpo, who said FLNG would ensure
monetisation of Nigeria’s gas resources to drive the economy and attain energy
security.
Mr
Olalekan Ogunleye, the Executive Vice President, Gas, Power and New Energy,
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.
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