Nigeria may earn $ 47 bn from natural gas in 10 years

Apr 13, 2005 02:00 AM

Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Engr. Funsho Kupolokun, said Nigeria could earn an estimated $ 47 bn from the on-going monetisation of her natural gas resources over the next ten years.
Speaking at the formal signing of Memorandum of Understanding (MoU) for Olokola LNG (OK LNG) in Abuja, Kupolokun said the various gas transmission projects will result in the commercialisation of 14,750 mm cfpd by 2011 with 80 % of that quantity coming from LNG.

According to him, the amount is made up of direct contribution from the energy sector ($ 17 bn), indirect sources through unlocking of other sectors to account for ($ 12 bn) while its multiplier effects will bring in ($ 18 bn). He noted that a sum of $ 2.5 bn investment will be needed to harness the opportunities in the gas and power sectors between now and 2010, saying government's expectation is to generate as much as $ 12 bn from gas projects by the end of 2012.
Kupolokun said the gas presently consumedin the country amounted to 573 mm cfpd and that 70 % of this is supplied to the power sector. However, a new development in the implementation of Olokola gas project was the emergence of Shell Petroleum Development Corporation (SPDC) to partner with NNPC, ChevronTexaco and British Gas in executing the project.

Kupolokun explained that in view of the proposed timing and location of two independent projects by Shell and ChevronTexaco, the corporation saw an opportunity for significant synergy and cost savings that could be achieved by merging the two projects into one at Olokola, an area located on the borderline between Ondo and Ogun States.
The group managing director flanked by representatives of the collaborating companies gave further details about the memorandum, saying they are proposing a model of high integration and a multi-structure company for new gas project.

The model entails joint ownership of all facilities except for individual trains with different ownerships, operate a single technology and as a single operator.
He said Olokola LNG has made arrangements to abide by the directive of the current presidential directive on the establishment of power generating facility along side any project to execute in the oil and gas sectors.

Source: This Day
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