Nigeria’s gas revenue earnings grow by 25 % per annum

May 09, 2006 02:00 AM

The Nigeria National Petroleum Corporation (NNPC) has disclosed that gas revenue earnings is expected to grow by 25 % per annum, generating $ 13 bn annually by 2007 from a number of projects already on stream and those scheduled to come on stream.
Dr Funsho Kupolokun, the Group Managing Director of the Corporation made the disclosure while speaking at an energy forum organised by the Rice University in Houston, Texas, noting that the gas sector currently accounts for revenues in excess of $ 7 bn per annum (about N 910 bn).

He explained that the Olusegun Obasanjo administration has come up with a long term vision to boost gas production, adding that following this, efforts have been geared towards prioritising the gas sector to generate as much revenue as was being made from crude oil exports. The corporation's helmsman disclosed that efforts were on to monetise the huge gas reserves put at 184 tcf through world-class gas utilisation projects.
He said tremendous progress had been made in the gas sector in the past few years with the NLNG delivering five LNG trains to consumers in Europe and America from 1999 to date.
"Work on Brass and OK LNG projects is on-going and the Final Investment Decision (FID) on the two projects will be taken during the last quarter of the year," he said.

The Group Managing Director also said 15 new gas fired power plants are currently under construction and will add about 1,700 MW of electricity to the national grid. It is expected that gas demand and consumption in Nigeria will hit 15 bn cf daily by 2010, up from the current demand of 1.5 bn cfpd.
Kupolokun said a lot of jobs were being created from all the gas projects in line with the nation's desire to attain the Millennium Development Goals (MDGs) by the turn of the decade.

He told prospective investors in the audience that the country was putting together a national gas master plan designed to enhance investment and partnership in the sector.
"The Gas Master Plan is to facilitate timely and cost effective gas capacity additions to meet unprecedented global and domestic gas demand as well as guide the relationship among stakeholders and further boost the economy," he explained. He pointed out that government was firming up policies that ensure longevity and sustainability of gas development in the country, while noting that the gas flare out deadline of 2008 was non-negotiable. This posture he explained was designed to achieve development of downstream gas-driven feedstock and gas-powered industries.

He assured that in spite of pockets of disruptions in the Niger Delta government was making efforts to tackle issues at stake head-on and assured also that Nigeria remains the best investor’s haven in the oil and gas sector.
Kupolokun invited the Americans to invest in Nigeria's gas sector and enjoy low operational cost and maximum return on their investment. Many senior statesmen and energy industry experts have visited the institute's energy forum to discuss a variety of public policy issuesincluding Presidents Olusegun Obasanjo, Nelson Mandela, Hosni Mubarak among others.

While speaking after the presentation, Mike O'Leary, one of the prospective investors in the audience said he was impressed by the rapid improvement in Nigeria's gas utilisation, noting that not much was known of this prior to the presentation.
"What we hear out here are news of disruptions of oil production, shut-ins, kidnappings and demands for what they call 'resource control'. The presentation would help put my impressions of the Nigerian oil and gas industry in better perspective and make better investment decisions," he said.

Source: Vanguard
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