NIGERIA seems set to commence the supply of gas to its her sister African countries of Benin, Togo and Ghana through the West African Gas Pipeline (WAGP) which was conceived with the aim of supplying Nigerian gas to the west African sub-region when it starts operation.
This is coming even as the country also positions to join the Russian Federation which until this moment is the only supplier of gas to the whole of Europe in the business of gas supply to the continent.
The hint was dropped recently by the Presidential Special Adviser on Petroleum matters Dr. Emmanuel Egbogah while delivering a paper on â€˜Nigerian Gas in the new economic landscapeâ€™.Â The Senior official further stated that Nigeria is by virtue of all these projects positioning to become the second largest supplier of Liquefied Natural Gas after Qatar.
According to him, Nigeria, rich with an estimated 186 trillion standard cubic feet (tscf) of gas and rising investments in gas production, is well on its way to becoming the world’s second-largest liquefied natural gas supplier, after Qatar.
He noted that the Nigerian Liquefied Natural Gas (NLNG) project has also expanded to six trains since the first train came into operation in 1999, while the seventh train is awaiting Final Investment Decision (FID). Other projects like Brass, Olokola and other third_party LNG projects are also awaiting FID.
Dr. Egbogah further said that “Nigerian LNG has a total installed capacity of 22 million metric tones of LNG per annum. In addition to the Nigerian LNG, other LNG projects such as the Brass, Olokola and other third party LNG plants are awaiting final investment decision, which is dependent on resolution of gas supply issues. The Brass and OKLNG facilities when completed, will add more than over 30 million metric tones of additional LNG capacity for export,”
Egbogah, who was speaking on “Nigerian Gas in the New Economic Landscape,” revealed that “Nigeria is, therefore on track to becoming the world’s second fastest growing LNG supplier in the world, next to Qatar”.
He said on a regional front, Nigeria was well positioned and ready to supply gas to the West African Gas Pipeline (WAGP) Project, which was conceived with the objective of delivering Nigerian gas to the West African sub-region when it fully begins operation soon. The over 550 kilometre-pipeline is now ready to deliver gas to Ghana, Togo, and Benin.
“At full capacity, the pipeline will deliver up to 470 million standard cubic feet per day. Initial demand is about 200 million cubic feet per day. However, there is already a signal of growing demand in the region in order of about 600 million cubic feet per day.
The pipeline could be extended beyond Ghana to Cote D’Ivoire and beyond as soon as market opportunities develop,” Dr. Egbogah said
According to him, in addition to the WAGP, a 4,400 kilometer Trans_Saharan Gas Pipeline Project, which was proposed to take gas through North Africa, the Mediterranean Sea and then to Europe is also envisioned with a potential for two billion cubic feet per day.
He stated that “the Trans_Saharan Gas Pipeline, which originates from Calabar to Ajaokuta, Kano and through North Africa to Europe is particularly a very strategic project for Nigeria.
Apart from providing a viable alternative source of gas supply to Europe besides the supply from the Russian Federation, it provides an opportunity for the diversification of the export route for marketing Nigeria’s natural gas resources besides LNG export, and for the integration of the economies of the sub region in line with the objectives of NEPAD and African Union”, adding that “the Trans_Saharan Gas Pipeline project and the other projects to supply regional markets therefore have the potential to confirm Nigeria’s position and economic leadership in Africa and at the same time earn us more respect in the comity of nations.”
Egbogah noted that the Nigerian domestic gas market was “today witnessing one of the most significant transformations from a very low level of utilization of about 500 million cubic feet per day a few years back in 2000; the domestic market is expected to see an unprecedented growth in utilization”.