Page 6 - DMEA Week 49

DMEA COMMENTARY DMEA

Nigeria needs to capitalise

more on gas wealth: NLNG

The head of Nigeria’s LNG-exporting consortium also warned that

hydrogen posed a threat to Nigerian gas

NIGERIA NIGERIA needs to make more use of its abun- its LNG can be used to replace dirtier diesel in
dant gas resources, in order to bring down small-scale power generation. It can also serve
energy costs, lower its emissions and spur eco- as a fuel for heavy vehicles.
nomic growth, Nigeria LNG (NLNG) CEO Tony The CEO also lauded the launch of construc-
Attah has said. tion on the 614-km Ajaokuta-Kaduna-Kano
Nigeria is Africa’s biggest oil producer but (AKK) pipeline over the summer. The pipeline
it also holds some 200 trillion cubic feet (5.4 will carry up to 56mn cubic metres per day of
trillion cubic metres) of proven natural gas, gas, some of which will be used at a series of new
and a further 600 trillion cubic feet in possible power plants under development in the states of
reserves. The country should therefore be seen Abuja, Kaduna and Kano.
as “a gas nation that has some oil,” Attah said at Nigeria’s central bank recently unveiled a
the Nigeria Oil & Gas Strategic Outlook Digital $648mn incentive package to encourage the
NLNG CEO Tony Attah. Session on December 8. development of natural gas vehicle infrastruc-
“It’s about time Nigeria really takes advantage ture. The move came after the government
of this resource,” Attah said, noting the key role ended subsidies for gasoline and diesel, making
gas had to play in delivering on climate goals. them more expensive.
NLNG has been producing LNG in Nigeria Nigeria’s ambition is to have as many as 1mn
for over two decades. Equity in the consortium vehicles converted to gas on the roads by the end
is split between state-owned NNPC with 49%, of 2021. This will reduce fuel bills for motorists
Royal Dutch Shell with 25.6%, France’s Total and improve the country’s trade balance, as it is
with 15% and Italy’s Eni with 10.4%. currently heavily reliant on imported fuels, lack-
The group’s LNG terminal on Bonny Island ing much functional oil refining capacity.
can produce up to 22.5mn tonnes per year (tpy) Gas can also be used more in household
of LNG. The consortium last year took a final cooking, Attah said, replacing dirtier fuels and
investment decision (FID) on adding a seventh reducing deaths from smoke inhalation.
train and de-bottlenecking the project, which “Gas is more than energy – gas is power and
should expand its output to 30mn tpy in 2024. gas is about survival, gas is life, gas is cleaner, gas
Both NLNG and Nigeria’s government have is affordable and gas is available,” the CEO said.
lamented about the country’s slow pace in Attah also noted that he saw hydrogen more
expanding its LNG exports. The country was as a threat than an opportunity for Nigeria’s gas
the world’s fourth biggest LNG exporter until industry. Hydrogen has been pitched as a means
last year, when it moved down to fifth position of decarbonising areas of industry that would
after being replaced by the US. otherwise be difficult to abate. It can be produced
“We have to set our sights on trains eight, nine from gas using techniques such as methane
and 10,” Attah said. He said that Nigeria ought reforming, and carbon emissions from the pro-
to be emulating Qatar and its aggressive LNG cess can be captured and stored. This is known
expansion programme. Qatar plans to raise its as blue hydrogen. But an increasing number of
liquefaction capacity by 33mn tpy to 110mn tpy countries instead favour green hydrogen, pro-
by 2025 and then expand it to 126mn tpy by the duced from water via renewable energy-pow-
late 2020s. ered electrolysis.
“There is a threat on its way. A lot of people
On the home front are talking about hydrogen today, but it is a
Attah also stressed the importance of Nigeria major competitor for gas in Nigeria,” Attah said.
expanding its use of gas at home, noting NLNG’s Given the threat that hydrogen poses, Nigeria
willingness to provide LNG to the domestic needs to make greater efforts to commercialise
market as well. The company has suggested that its gas resources before it is too late, he said. ™

P6 www. NEWSBASE .com Week 49 10•December•2020