Nigeria approves enablers for domestic gas supply

Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr Mohammed S. Barkindo, has said government has approved all the "enablers" requested by International Oil Companies (IOCs) to deliver gas for domestic power supply. This follows the presidential directive for the Nigeria National Petroleum Corporation (NNPC), to meet all the domestic gas need of the country by December.
While chairing a steering committee meeting on domestic gas delivery in Abuja, Barkindo said, "This is a deliberate move by government towards meeting the 6,000 MW target by the end of this year."

He said the approval would help fast-track clearing of goods at the ports and boost the optimism of all operators to deliver gas on schedule.
"Our commitment to deliver the gas for domestic power supply is non-negotiable, as supply issues are of great concern to the leadership of this country," he said, adding that NNPC would lead efforts with all IOCs to firm up plans for the realisation of 6,000 MW target through delivery of the required gas. "There is an urgent need and we must prioritise domestic gas supply over any other project, since the country needs power to realise the seven point agenda of the Federal Government," Barkindo said.

Barkindo announced that $ 1.5 bn has been provided in the 2009 budget for power supply, and urged stakeholders to be proactive by making arrangements ahead in securing the funds. The meeting confirmed stakeholder's engagement on gas utilisation within the eastern area and involvement of Nigeria Liquefied National Gas (NLNG) in realisation of the plan.
Barkindo stated that a presidential directive to the NNPC to meet the country's gas demand by December this year had caused management of the corporation to return to the drawing board.

While visiting NNPC facilities in Lagos and Ogun states, he said as a demonstration of its commitment to meeting local gas need, government had increased the funding of gas projects from $ 1 bn last year, to $ 1.5 bn this year. This brings the budget for development of the sector in two years to $ 2.5 bn.
Barkindo said he embarked on the tour to get first hand information of all NNPC facilities and to sensitise members of staff on on-going reforms in the industry.