Thu, Jul 18 2024 18 July, 2024

Nigeria committed to expanding domestic gas sector: NNPC CEO

The group CEO of the Nigerian National Petroleum Company, Mele Kyari, has reinstated Nigeria’s commitment to deepening domestic gas use.

A panel session at the 23rd Nigeria Oil and Gas (NOG) Energy Week (Photo: Gas Outlook/Samuel Ajala)

(Abuja, Nigeria) — The CEO of the Nigerian National Petroleum Company (NNPC), Mele Kyari, has reaffirmed Nigeria’s commitment to expanding domestic gas use, emphasising infrastructure investment to meet energy needs.

He said this on Tuesday during his keynote address at the opening of the 23rd Nigeria Oil and Gas (NOG) Energy Week.

Kyari emphasised that delivery of domestic gas is a key objective of the Nigerian government and its partners. He noted that the company is building the infrastructure that is required to deliver gas into the country.

“No one is putting money into domestic gas infrastructure, we are doing it, we are NNPC. We are leading this. And what are we doing? We are building the infrastructure that is required to deliver gas into our country.

“Of course, we charge tariffs, not CSR. But we are leading this so that we can deliver this, and I can tell you that within the next six months, you will see the changes that will happen. For instance, for those of us who are aware of the Obiafu-Obrikom-Oben (OB3) project, one element stopped us.” The inability to cross River Niger delayed the project for 12 years, he said.

Kyari expressed the company’s commitment to continue investing in critical midstream gas infrastructure such as the OB3 and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.

“Every one of us, I know I can see many of you here, waiting for the pipeline to work so that they can put money into upstream gas or even non associated gas. Nobody will do it except those who see that. And I agree, the independent companies and Nigerian partners, yes, they will contribute to domestic gas but there must be an evaluation mechanism.

“And we’ll provide this. And as we’re doing this, we’re also not waiting for anyone. We are deepening domestic gas utilisation,” he added.

Powering CNG initiatives

Kyari noted that powering compressed natural gas (CNG) is an initiative of the president to ensure that citizens have cheap automobile fuel.

“It’s already happening. I can tell you, in two days, we are going to commission 12 stations in partnership with NIPCO, most of the stations are ours, so that in Lagos and Abuja, as we’re expanding to other states, we can quickly provide the cheap automobile fuel, which is CNG.

“And this will lead. Not just because we have to lead, but because this is business also. It will pay off. So others can join us. We invite you to join us. I would like to emphasise that our country’s short-term and even long-term prosperity depends on what we do in the energy sector.

“It’s not just about creating energy, that’s not what we’re doing. We are creating resources that is required to develop this country, create the prosperity of today so that the prosperity of tomorrow will also be realistic. And that is why it is not misplaced for our country to say that the short-term survival of the economy of this country depends on all of us in this room.

He also declared a state of emergency on production in Nigeria’s oil and gas industry.

“And it’s an easy way of doing it. It’s first, we will intervene. Join us in the war. And also, we’ll recover the two million barrels because it is practical. And whatever is required to bring the incremental, in terms of providing new assets, closing divestments, I’m sure we don’t have any issues with that anymore. And also, issues around re-sharing, removing the principalities in our contracting process.

“And I believe you will join us so that we’ll act collectively and shortly, so that we can achieve those outcomes. Otherwise, we’ll not be in business, we’ll be talking, as you said, you know, we don’t want to talk, we don’t want to debate. The debate has ended. And you need to join us. If you don’t, this country will move on without any of us here,” Kyari ended.

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