Page 13 - GLNG Week 49

GLNG AFRICA GLNG

Nigeria needs to capitalise

more on gas wealth: NLNG

PERFORMANCE NIGERIA needs to make more use of its abun-
dant gas resources, in order to bring down
energy costs, lower its emissions and spur eco-
nomic growth, Nigeria LNG (NLNG) CEO Tony
Attah has said.
Nigeria is Africa’s biggest oil producer but it
also holds some 200 trillion cubic feet (5.4 tril-
lion cubic metres) of proven natural gas, and a
further 600 tcf in possible reserves. The country
should therefore be seen as “a gas nation that has
some oil,” Attah said at the Nigeria Oil & Gas
Strategic Outlook Digital Session on December
8.
“It’s about time Nigeria really takes advantage
of this resource,” Attah said, noting the key role
gas had to play in delivering on climate goals.
NLNG has been producing LNG in Nigeria
for over two decades. Equity in the consortium
is split between state-owned NNPC with 49%,
Royal Dutch Shell with 25.6%, France’s Total
with 15% and Italy’s Eni with 10.4%.
The group’s LNG terminal on Bonny Island
can produce up to 22.5mn tonnes per year (tpy)
of LNG. The consortium last year took a final
investment decision (FID) on adding a seventh development of natural gas vehicle infrastruc- NLNG’s CEO, Tony
train and de-bottlenecking the project, which ture. The move came after the government Attah
should expand its output to 30mn tpy in 2024. ended subsidies for gasoline and diesel, making
Both NLNG and Nigeria’s government have them more expensive.
lamented about the country’s slow pace in Nigeria’s ambition is to have as many as 1mn
expanding its LNG exports. The country was vehicles converted to gas on the roads by the end
the world’s fourth biggest LNG exporter until of 2021. This will reduce fuel bills for motorists
last year, when it moved down to fifth position and improve the country’s trade balance, as it is
after being replaced by the US. currently heavily reliant on imported fuels, lack-
“We have to set our sights on trains eight, nine ing much functional oil refining capacity.
and 10,” Attah said. He said that Nigeria ought Gas can also be used more in household
The company has to be emulating Qatar and its aggressive LNG cooking, Attah said, replacing dirtier fuels and
expansion programme. Qatar plans to raise its reducing deaths from smoke inhalation.
suggested that its liquefaction capacity by 33mn tpy to 110mn tpy “Gas is more than energy – gas is power and
LNG can be used by 2025 and then expand it to 126mn tpy by the gas is about survival, gas is life, gas is cleaner, gas
late 2020s.
is affordable and gas is available,” the CEO said.
Attah also noted that he saw hydrogen more
to replace dirtier On the home front as a threat than an opportunity for Nigeria’s
diesel in small- Attah also stressed the importance of Nigeria gas industry. Hydrogen has been pitched as a
expanding its use of gas at home, noting NLNG’s means of decarbonising areas of industry that
scale power willingness to provide LNG to the domestic would otherwise be difficult to abate. It can

generation. market as well. The company has suggested that be produced from gas using techniques such
its LNG can be used to replace dirtier diesel in as methane reforming, and carbon emissions
small-scale power generation. It can also serve from the process can be captured and stored.
as a fuel for heavy vehicles. This is known as blue hydrogen. But an increas-
The CEO also lauded the launch of construc- ing number of countries instead favour green
tion on the 614-km Ajaokuta-Kaduna-Kano hydrogen, produced from water via renewable
(AKK) pipeline over the summer. The pipeline energy-powered electrolysis.
will carry up to 56mn cubic metres per day of “There is a threat on its way. A lot of people are
gas, some of which will be used at a series of new talking about hydrogen today, but it is a major
power plants under development in the states of competitor for gas in Nigeria,” Attah said.
Abuja, Kaduna and Kano. Given the threat that hydrogen poses, Nigeria
Nigeria’s central bank recently unveiled a needs to make greater efforts to commercialise
$648mn incentive package to encourage the its gas resources before it is too late, he said.™

Week 49 11•December•2020 www. NEWSBASE .com P13