Oil & Gas
By Anthony Isibor
ED Ubong, Coordinating Director, Decade of Gas Programme, has said that with the huge gas potential in the country, gas production will be increased by 20% in 2024.
Speaking as a panelist at the ongoing Sub Saharan Africa International Petroleum Exhibition and Conference, SAIPEC, on Wednesday in Lagos, Ubong expressed optimism that the Decade of Gas Programme is heading towards the right direction.
Discussing the topic “Dissecting African Gas Strategies and Opportunities”, Ubong said that the optimism was hinged on the availability of numerous gas infrastructure already being developed in the country.
“it is a very simple target. So when you look at that from a 10-year perspective, if they are successful building gas supply in Nigeria by 10%, you can see how we have the potential to double what our current supply situation is.
“Everyone can also look at six critical gas infrastructural projects that are ongoing in Nigeria; the completion of the OB 3 line, the building of the small lines that will take gas from where they are to the OB3 line, the AKK, the completion of the mid-line compression of the gaps, which will ensure that gas gets from one end of the gaps to the other at the right pressures.
He expressed the hope that before the end of March, the OB3 will be completed and it will be a major achievement for Nigeria because sitting primarily at the back of one side of the line is 600m Skuf of gas per day.
“If you have been following the news, Saplat has completed mechanically, all the work that needs to be done on Anno, Shell has completed four wells. So, once that link is completed, we will begin to see significant in-boarding flowing in the domestic market.
“Between December and now, the gas supply to export has been ticking off. Its a small progress, it is not where we want it to be, but the direction is one that gives that confidence that things are beginning to move in the right direction.
He, however, noted that gas pricing has been a challenge because of the removal subsidy and the numerous discussions about the level of hardship that it has generated.
“So although the work on gas pricing was concluded last year, the actual movement is put on hold for other strategic reasons and the regulatory agency made a clarification last month that gas prices should remain where they were on commercial contract last year and we are in the process of working what we call litigation.
“Basically, if gas price was to move up or down, who do you protect; the most vulnerable population.
“It is only when that work has been completed, tested with the Presidency, that we may be able to see changes. It’s about being deliberate. This year, we expect the gas suppliers to take final decisions in about three to five big projects.
“Also, the Presidency has inaugurated the mid-stream and downstream gas infrastructure funds, which have a specific mandate under the PIA one of which is to ensure that gas flare penalties are used to remediate issues in the gas flaring community.
“There are only two ways to do that, how do those communities get energy, and if there are health issues associated with gas flaring, how do we support them.
“So as businesses make decisions, we have to ensure that there is continuity around gas development.
“The message is that we are on the right trajectory, we are beginning to see clear results, but we must continue to be focused for that piece of work; doing what we need to do, tracking it, making it more visible,” Ubong added.
14th February, 2024.
C.E.
Tags: Ed Ubong SAIPEC
