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‘Under Investment, Others Threaten FG’s Gas Expansion Target’
Despite post-COVID recovery in the oil and gas sector, indications have emerged that historical under-investment along with tightening monetary policies, high inflation, amongst others pose a major setback to the Federal Government gas expansion target.
This is coming even as the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), MeleKyari, stated that the company would partner with the Nigerian Content Development Monitoring Board (NCDMB) and all relevant domestic and international stakeholders to enhance the supply, delivery and utilization of gas in the country.
Speaking at the opening session of the 11th Practical Nigerian Content Forum, with the theme, “Deepening Nigerian Content Opportunities in the Decade of Gas,” Kyari maintained that the NNPC Ltd would leverage on the provisions of policies/regulations, technological breakthroughs, innovative financial mechanisms and other key initiatives such as the National Gas Expansion Programme to make the energy sector resilient.
He said: “The global energy sector has, to a large extent, recovered from the impact of COVID-19 pandemic, only to be challenged by historical under-investment, tightening of monetary policies, high inflation, geopolitical tension and security issues, among others, resulting in high and volatile energy prices, and uneven and often low energy supply and demand.
“Energy poverty and security which, hitherto, was a regional and under-developed countries concerns, has now become a global concern, with countries developing all sorts of approaches and innovations to remain energy resilient.
“International Agendas/Frameworks, including the UN’s 2030 Agenda for Sustainable Development and successive Conference of Parties have continue to recognise the role of natural gas as a fuel of choice for sustainable development and for smooth energy transition to a low carbon future.
“This has created the much-needed opportunity to power the global economy in a sustainable manner using clean fuels to address global energy related challenges and create value for businesses and the society.
“In line with this and with over 200 TCF of proven gas reserves and a potential of growing to 600TCF, the Federal government declared 2021-2030 as the decade of gas towards a gas-powered economy with natural gas used as direct source of energy and its derivative, such as LPG and CNG, for clean cooking and driving.
“Utilising our upstream gas assets, and key gas pipeline infrastructure (ELPS, Oben – Ajaokuta/Geregu, the vast eastern network covering Alakiri-Obigbo, IkotAbasi and Imo River, and the Gas Transmission Systems (GTS 1-5) to NLNG, NNPCL and its shareholders produce gas in excess of 6 Bscf/d and deliver to the domestic, regional (WAGP) and international gas/LNG markets, thus building in-country capacity and value to shareholders as well as earning foreign revenue.
“Today, the NNPC JV power plants (450 MW Okpai I and 650 MW Afam VI) continue to be key sources of power generation to the country and more power plant projects are being progressed.
“To further deepen gas utilization, we are exploiting more gas resources, including in the frontier basins, deploying/constructing more gas infrastructure & facilities e.g., 2 Bscfd OB3, 2.2 Bscfd AKK, Ibadan-Ilorin-Jebba Pipeline (EIIJ), Qua Iboe-Obigbo-OB3, Obigbo – Umuahia – Ajaokuta (OUA) pipelines and ANOH Gas Processing Plant, etc.,) and utilization points (AKK Power Plants, MEPP, petrochemical plants, , retail CNG refuelling stations, etc. thus integrating gas supply sources with the demand centres across the country
“We are also complementing these gas penetration projects with several renewable energy and emission reduction projects to enhance the sustainability of the energy sector.
“Furthermore, we are embarking on LPG Penetration Scheme through the establishment of Micro Distribution Centres (MDCs) across the country to deepen LPG consumption for clean cooking (stop the detrimental in-door air pollution and deforestation) while creating opportunities for fabrication of LPG/CNG/LNG tanks, gas stoves, cylinders, etc.
“This is underpinned via enhanced LPG production NEPL’s IGHF, NLNG, expansion of terminals and LPG trucking capacity.”
Kyari said all these expansions and investments have created opportunities for Nigerian content, noting that the NNPC is encouraging organizations to identify the relevant areas in which they can participate in.
“I am very pleased of the rapid growth of our local capacity, and we will continue to collaborate with NCDMB and other stakeholders to propel our local talents to achieve their full potential and compete favourably, domestic and internationally.
“We would continue to deepen our Gas Cooperation strategy with all relevant domestic and international stakeholders to enhance gas supply, delivery and utilization while leveraging on the provisions of policies/regulations, technological breakthroughs (e.g., Carbon capture, utilization and storage-CCUS to lower GHG emissions), innovative financial mechanisms and other key initiatives such as the National Gas Expansion Programme to make the energy sector resilient.
“It is my believe this would create value for our business and shareholders and make natural gas not only a transition fuel but a destination fuel of choice,” he added.
Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.
The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.
Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.
“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.
“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”
The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.
Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.
“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.
Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.
Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.
Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.
The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.
The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.
The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”
“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.
He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.
Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.
“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.
Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.
“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.
The Governor of Rivers State, Sir Siminalayi Fubara, says that the impact of flooding and erosion on the inhabitants of Rivers State, especially those living in coastal communities, are of great concerns to the government.
Governor Fubara lamented the consequences of flood on both human and biotic life, which sometimes lead to loss of life, property, and degradation of the environment.
The Governor made the remark in Port Harcourt during the launch of a book titled, ‘Coastal Zone Flooding And Erosion in Developing Communities, Principles, Cases and Strategies,” written by Emeritus Prof. Wiston Bell-Gam.
According to the Governor, who was represented by the Secretary to the State Government, Hon. Benibo Anabraba, his administration, would continue to undertake and encourage adaptation strategies to combat flooding.
In his words: “The Rivers State Government will continue to undertake and encourage adaptation strategies, such as construction of seawalls and breakers, canals and channels, restoring coastal ecology and ecosystem for coastal resilience and where necessary, the relocation of communities on the coastline.
“These issues are currently receiving the much needed attention and intervention by the recent approval of the construction of shoreline protection along the coastlines of more than five communities in Ogba/Egbema/Ndoni and Opobo/Nkoro LGAs respectively.”
“It is important that as stakeholders in the protection and preservation of marine environment, we all act and advocate for mitigation strategies such as reduction in emission of Green House Gasses that causes climate change and rise in sea levels. Let us promote the use of clean energy and against fossil fuel.
Governor Fubara further cautioned residents to desist from building on waterways.
“We also need to encourage our people to stop developing buildings on and along natural water courses, indiscriminate sea mining and dredging activities on our coastline without consideration for mangroves and swamps,” he stressed.
He appreciated the author for his advanced contributions to the body of knowledge in both Rivers State and globally.
Also speaking, a former Military Governor of the old Rivers State and Amayanabo of Twon Brass, King Alfred Ditte-Spiff, who was Royal Father at the Event, stated that the book was timely to enable stakeholders manage the challenges of global warming.
“Global warming is real. If it’s not addressed globally, a time will come coastal areas will find themselves under water. The coastline of Nigeria is shocking with many mangroves gone,” he noted.
The Reviewer of the Book, who is also the Vice Chancellor of Olusegun Agagu University of Science and Technology, Ondo State, Prof Temi Ologunorisa, explained that the 14-chapter book is timeous as it fills literary gaps between desire and available knowledge on coastal flood and erosion in developing communities.,
“A major beauty of the book that sets it apart is the detailed consideration of flood and erosion control from around the world,” he stated, adding that the book is based on detailed field investigation.