- Thursday, 30 January 2014
Attaining optimum capacity in gas production, domestic utilisation and export of the product, as to make Nigeria a major power in international gas market, is the chief aim of Nigeria’s national gas policy. This reality was compelled by the fact that the country boasts of a proven reserve of 260 trillion cubic feet of natural gas, making it the country with the largest gas reserve in the African continent. Nigeria's proven gas reserve is three times more than its proven oil reserve. Prelude to the enactment of a clear-cut policy regulating operations in the country’s oil and gas fields in the mid 1980s, associated gas encountered during the normal course of oil production was largely flared. Not minding efforts by various Nigerian regimes impose a cap on gas flaring ever since; Nigeria maintains the unenviable position as the world’s largest gas-flaring nation. Nigeria is reputed to be losing 18.2 million U.S. dollars daily, via gas flaring.
The Nigerian Liquefied Natural Gas Company which commenced operations (exploration and production) in 1999 is the key player in the country’s gas sub-sector of national economy. PIB 2012 legislation which obliges the country’s federal authority to provide a network system for supplying the domestic market with gas is one of efforts being made to utilize the country’s enormous reserves and to arrest the problem of gas flaring in the country’s saturated oil fields. Nigerian Liquefied Natural Gas Company which is a subsidiary of NNPC has an obligation to develop an integrated network of gas pipeline to serve Nigeria’s industrial and domestic oil need by facilitating the piping of natural gas from the country’s gas fields operated by local and international companies to the country’s cities and industrial parks.
To an appreciable extent, the Nigerian Liquefied Natural Gas Company has delivered on its second mandate, i.e, and production of gas for export, with shipment of gas from the Bonny Plant overseas, to various Europe destinations, with the commencement of the company’s export operations commenced late in 1999. Gas supply from the country’s Gbaran-Ubie and Soku gas fields fuels the NLNG Plant at Bonny Island. The gas company operates six liquefaction units (LNG trains). The units or trains produces over 22 million metric tonnes of LNG annually (mmtpa), i.e., about 10% of the world's LNG consumption. Over US$9.348 billion was invested in building of Nigeria’s six LNG trains in Bonny Island.