The Nigerian National Petroleum Corporation, NNPC Group Managing Director, Mr Andrew Yakubu, said Nigeria will rake-in about $10 billion as Foreign Direct Investment, FDI, from gas-based industries as a result of government’s determined efforts to position the gas sector for aggressive growth.
He said that Nigeria is transiting from an essentially oil based country to an integrated Oil and Gas one.
“In clear terms, the Jonathan’s administration has outlined three aspirations for gas, which are, gas to power; gas based industrialization; and high value gas export, which will undoubtedly generate as much revenue and other economic benefits as oil,” Yakubu said at the just concluded Offshore West Africa conference, OWA, in Accra, Ghana.
According to him, Nigeria has a total gas reserve of 187 Trillion Cubic Feet (TCF) with potential to grow to as high as 600 TCF, and this positioned the country as Seventh among countries with natural gas reserves.
The NNPC boss noted that between now and 2015; over 2 billion cubic feet per day of natural gas would be deployed in the country to triple the existing power generation of 4.5Giggawatts to 13.5GW.
He said government’s focus on gas development and ensuring its availability for power generation was based on the belief that the spin-off effects of reliable power supply would provide a solid base for industrialisation as well as attract Foreign Direct Investment into the country.
Yakubu said Nigeria would continue to maintain its presence in High Value Gas Export by pursuing two additional Greenfield Liquefied Natural Gas (LNG) projects at Brass (10 Million metric tons per annum) and Olokola LNG (10 MTPA) in addition to the existing 22 MTPA NLNG in Bonny, Rivers state.
He said in a bid to earn more revenue from gas, the nation also supplies 130 million cubic feet of gas to Togo, Benin Republic and Ghana and that given the envisaged growth of the gas sector, government had commenced reforms geared towards attracting more investment and enhancing and ensuring bank ability of projects.
“The combined impact of Developing Commercial Frameworks for Gas Pricing, Domestic Supply Obligation and Gas Infrastructure Blueprint, will stimulate rapid transition of the Nigerian Gas sector,” Yakubu who was represented by the NNPC Group General Manager, Corporate Audit, Mr. Isa Inuwa said.
He added that the main policy initiative of government in the downstream sector was full deregulation of the sector and implored investors from Africa and around the World to come and participate in the Nigerian Oil and Gas sector given the huge potentials there-in.