The Nigerian National Petroleum Corporation, NNPC, yesterday, lamented that oil and gas firms operating in the country are currently flaring 700 million standard cubic feet of gas daily, capable of generating an equivalent of 5,000 megawatts of electricity per day. Speaking at the 2018 Oloibiri Lecture Series and Energy Forum, OLEF, organised by the Society of Petroleum Engineers, SPE, Group Managing Director of the NNPC, Mr. Maikanti Baru, also disclosed that as at today, all the thermal power plants in the country are connected to permanent gas supply pipelines.
Baru, who was represented by the Chief Operating Officer, Upstream of the NNPC, Mr. Bello Rabiu, however, noted that the volume of gas flared by oil and gas companies had dropped from 2.5 billion standard cubic feet, SCF, per day to the current level of 700 million SCF per day. He said the NNPC had undertaken a massive revamp of the country’s pipeline network, a development which had helped improved gas supply to critical sectors of the economy. According to Baru, between 2010 and today, almost 500 kilometers of pipelines have been completed, commissioned and were now delivering gas. He said, “We have embarked on one of the most aggressive gas reforms and implementation. Accelerated implementation of gas pipeline infrastructure development, with specific focus on critical pipeline infrastructure to power plants is being put in place.”
He said some of the completed pipelines include the 196 kilometers, KM, Oben-Geregu pipeline; 110km Escravos-Warri-Oben pipeline; 50km Emuren-Itoki pipeline; 31km Itoki-Olorunshogo pipeline; 24km Imo River-Alaoji pipeline and 128km Ukanafun-Calabar. Baru said that, “With these, all available power plants in the country today are connected to permanent gas supply pipelines. In addition, there is ongoing construction of the very strategic East-West OB3 pipeline, which is 127km, scheduled for completion by third quarter 2018, the expansion of the Escravos-Lagos Gas Pipeline System scheduled for completion by first quarter 2018. “Most recently, the Federal Executive Council approved the contract award of the 40-inch by 614Km Ajaokuta-Kaduna-Kano pipeline and associated facilities. This pipeline is expected to supply natural gas to power plants and industries in the northern part of the country.”
Baru averred that once completed, the nationwide backbone gas infrastructure would be in place, adding that with the effort in infrastructure development, the NNPC would have expanded supply capacity, establishing an integrated gas pipeline infrastructure grid across the entire country.
“With the growth in infrastructure, gas which was hitherto inaccessible and flared is now being utilized. Nigeria has seen the most aggressive drop in gas flaring from a peak of 2,500mmcf/d few years ago to about 700mmcf/d currently and reducing, and in the next few years we would have stopped routine flaring. That is, zero flares from all the gas producers, Baru explained. Baru also lamented that despite the fact that the country is blessed with abundance of renewables which are yet to be fully harnessed into the country’s energy mix.
He listed the renewable as wind, solar, hydropower and geothermal as well as biomass and waste energy. To this end, Baru said the NNPC had adopted a strategy that is focused on diversification from oil using its enormous gas resources for in-country industrialisation, such as gas to power, gas to urea, methanol, and fertilisers among others. He said, “This has the potential to accelerate growth of our economy and mitigate the impacts of future oil price drops. In terms of Renewable Energy, we see the potential to increase the energy capacity and availability with the abundance.
“Currently, we have a large hydropower potential of 11,250MW, 11 million hectares of forest and woodland, 30 million tonnes per year of municipal waste, 3.5 to 7.0 kW h/m2/day of Solar radiation; wind speeds from a low 1.4 to 3.0m/s in the Southern areas, except for coastal line and 4.0 to 5.1m/s in the North. With all these resources, the country is still lags behind in the renewable energy development and usage possibly due to high costs of developing them when compared to fossil-based fuels.”
Also speaking, Chairman, SPE Nigeria Council, Mr. Chikezie Nwosu, called on the Federal Government to rethink its policy to accommodate renewable energy, adding that the country should be ready for a future without crude oil. He said that the SPE would work with other stakeholders in the energy industry to ensure that the initiatives introduced by the current administration are sustained beyond the administration.
