Nigeria’s gas sector holds $51 billion investment opportunity

• Three gas projects ready for completion this year

ABOUT $51 billion worth of investment opportunities currently exists in Nigeria’s gas sector.

This investment could be spread to Free Trade Zones (FTZ), central gas processing facilities, fertilizer plants, gas exploration & production, pipe milling & local fabrication yards. Other available investment areas are virtual pipelines, gas transmission, and power plant projects, flare gas commercialisation initiatives and liquefied petroleum gas plants.

Already, three gas transportation infrastructure projects have been scheduled for completion by the end of the fourth quarter of 2018.

The projects include Obiafu- Obrikom- Oben (OB3) Pipeline, which is expected to link gas sources in the East to Western and Northern markets; the ELPS II Pipeline expansion project that is to take gas from the source to customers; and the ELPS-LEKKI Pipeline project.

Stakeholders who spoke at the Nigerian Gas Association (NGA)’S Natural Gas Forum 2018 titled: “Gas Policy, Markets and Regulation: Catalysing Development of Gas Industrial Hubs,” believed that there are potential in the Nigeria’s gas sector that were yet to be harnessed.

Speaking at the forum, the General Manager, Commercial, Nigerian Gas Processing and Transportation Company Li mited (NGPTC), Justin Ezeala, said there are gas projects, which were nearing completion stages and would add to Nigeria’s gas production capacity by fourth quarter of this month.

He stated that development of a robust gas transportation network is critical for the development of gas industrial hubs across the country.

He noted that the major pipeline projects they are ready for completion and others, were now being developed to achieve effective gas transportation in Nigeria.

He said that synergy among stakeholders reduces costs, increases profits, minimizes business risks and serves the customer better.

Ezeala added that a robust gas transportation network is required to deliver gas to the existing and proposed industrial hubs.

According to him, the pres- ence of gas supply infrastructure supports the development of industrial hubs, bringing cleaner, cheaper and more environmentally friendly fuel to the markets. He noted that one of the main goals of the Gas Master Plan was to develop a backbone gas transportation network to make gas available to existing and potential industrial hubs across the country.

Ezeala noted that while this may not have been fully realized, a lot of progress has been made with required modifications to the initial proposal where necessary.

The lead presenter at the forum, the Managing Partner, Olaniwun Ajayi, Prof. Konyin Ajayi, said that there is opportunity for $15 billion investment in the country’s gas sector.