Oil & Energy
Nigeria Has 187trn Cubic Feet Of Gas -Minister
The Federal Government, says Nigeria is endowed with about 187 trillion cubic feet, of proven natural gas reserves just as another estimated 600, TCF, is yet to be discovered.
Speaking at the annual technical conference of the National Association of Energy Correspondents (NAEC) in Lagos, the Minister of Petroleum Resources, Mrs. Diezani Allison-Madueke said: “Our oil Production is over 2 million barrels per day and we currently produced about 8 million cubic feet of natural gas per day.” The minister who was represented by the executive secretary of Nigeria Content Development and Monitoring Board (NCDMB), Dr Earnest Nwapa announced that Nigeria has commenced gas distribution to neighbouring West African Countries through the West African Gas Pipeline Scheme, which runs from Lagos to Takoradi.
According to her, the Nigerian gas sector is currently begging for a 20 billion dollars annual investment from the government if it must be optimally harnessed, adding that the renewed focus on the domestic gas sector will drive unprecedented growth in gas utilisation from 1 billion cubic feet per day to 5 billion cubic feet per day by 2015.
She noted that this growth rate is forecast to be world’s most aggressive growth in gas sector by stimulating an unparalleled level of investment activity in the country, pointing that the Nigerian Content Act is a key step taken by government in recent years to ensure that oil and gas activities resulted in economic development.
The petroleum minister further said that the implementation of the Act has provided immense inspiration and confidence to adopt the pilot schemes, which are already making positive and measurable impacts in the sector, pointing that the Act is not intended to indigenise the industry or nationalise investors’ assets in the Nigerian economy.
Mrs. Allison-Madueke stated that the Act sets out provisions that guarantee investment made with the country, to ensure the right of every investor is protected under the laws, while noting that government has taken another major step to unlock the enormous potential of the domestic gas sector to attract investments.
We have implemented the most aggressive reform of the commercial framework for gas in Nigeria to address the observed inadequacies in the commercial terms that stunted investment, “she stressed, hinting that as a government, our desire is to ensure that substantial proportion of this investment is retained in Nigeria as unique provision in the Nigeria Content Development Act,”
She told the gathering that the gas sector and the oil industry currently need to spend about 20 billion dollars annually, even as upstream gas production for the domestic gas market alone has been receiving a dedicated spend of between 1.5 to 1 billion dollars annually from the Federal Government.
The minister said: “ The major operators have not helped matters by reliance on the importation of goods and services from abroad without making the provisions to develop sustainable capabilities within Nigeria that will support life cycle operations in the country. Instead, more emphasis have been placed on speedy achievement of first oil, generation of revenue without paying attention to actions that add value to the economy.”
According to her, for some time, it has been a major concern that after many decades, contractors and multinationals that have done business worth several hundred millions of dollars in Nigeria do not have appreciable foot-print in Nigeria. Instead, the trend has been to look to foreign countries for operations in Nigeria and the Gulf of Guinea region.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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