What are will Nigeria do with her Gas?
A question we should start asking ourselves as more developed countries continues to set targets for Greener fuels.
Our biggest Natural Gas producer in NLNG sells a significant portion of its products ( 22 million tons /annum LNG capacity) via Export channels. All LNG cargoes go to the Export market. For LPG, out of over 3 Million tons in production, only 450,000MT has been set aside for the local market.
Where will the market for the Nigerian gas come from if as reported by SPglobal, Europe goes completely green by 2050. See excerpts of the report below.
The current European Commission is the greenest ever as it pushes toward carbon neutrality by 2050. Gas —despite being a fossil fuel— is considered by many as having a key role to play in Europe’s energy transition, and the industry is working hard on ways to decarbonize gas and secure the future of Europe’s vast gas infrastructure, including through the growing use of hydrogen.
Following an interview with James Watson, secretary-general of industry body Eurogas, S&P Global Platts Stuart Elliott, Henry Edwardes-Evans, and James Huckstepp discuss Eurogas’ key messages around the role of gas in Europe.
Nigeria must continue to develop her local Gas markets and its starts with the IOCs and Gas producers making intentional investments along the value chain. A typical example is how NLNG invested in a Mother vessel to enable a daughter vessel of 2000MT capacity to supply the local market in Nigeria. NLNG bore the cost for several years; today the market is over 1 million tons per annum from 70,000MT in 2007, also with no Mother vessel. Now, we have investors going into the vessel businesses for the direct supply from NLNG Bonny terminal to Lagos and Port Harcourt depots.
NLNG needs to continue the drive in growing the Nigerian LPG market; at 450,000MT per annum target, it leaves at least 550,000MT for import, which means higher cost of LPG to the final consumer as Imported LPG is more expensive due to the Foreign Exchange requirement.
What will Nigeria do with her vast trillion cubic feet reserves of gas, what will happen when alternative greener fuels displace our beloved LNG and LPG in the international market? How well are we growing the local market?
These are some of the questions we have answers to, we can rally the Nigerian Gas industry and make concerted efforts towards the growth of the local industries.