Nnpc 51bn investment needed in gas sector
A very timely and relevant topic!
According to a recent report by the Nigerian National Petroleum Corporation (NNPC), the country's gas sector requires an investment of N51 billion (approximately $137 million) to meet the growing demand for natural gas and to ensure the country's energy security.
The report, which was presented at the 2022 Nigeria International Petroleum Summit (NIPS), highlighted the need for increased investment in the gas sector to address the current gas supply deficit and to support the country's economic growth.
The NNPC's report noted that the country's gas production has been declining over the years, with a significant shortfall in gas supply to the power sector, leading to frequent power outages and economic losses. To address this challenge, the corporation is seeking to attract investments from both local and international investors to develop new gas fields, upgrade existing infrastructure, and increase gas production.
Some of the key areas that require investment in the gas sector include:
- Exploration and production of new gas fields: The NNPC is seeking to attract investments to explore and develop new gas fields to increase gas production and reduce the country's reliance on imported gas.
- Upgrading of existing infrastructure: The corporation is seeking to upgrade existing gas processing plants, pipelines, and storage facilities to increase gas processing capacity and reduce gas flaring.
- Development of gas processing and liquefaction facilities: The NNPC is seeking to develop gas processing and liquefaction facilities to convert gas into liquefied natural gas (LNG) for export and domestic use.
- Development of gas-based power generation: The corporation is seeking to develop gas-based power generation projects to increase power supply and reduce the country's reliance on diesel generators.
The NNPC's report highlighted the potential benefits of investing in the gas sector, including:
- Increased energy security: Investing in the gas sector can help to increase gas production and reduce the country's reliance on imported gas, thereby improving energy security.
- Economic growth: The gas sector has the potential to create jobs, stimulate economic growth, and increase government revenue.
- Reduced carbon emissions: Investing in the gas sector can help to reduce carbon emissions by promoting the use of cleaner-burning natural gas instead of diesel generators.
Overall, the NNPC's report highlights the need for increased investment in the gas sector to address the country's energy challenges and to support its economic growth.