THE Federal Government has concluded plans to expand the country's Liquefied Natural Gas (NLG) production from the current 26 million tonnes to 40 million tonnes a year. 

The country has an estimated 180 trillion cubic feet (Tcf) of proven natural gas reserves, making it the ninth largest natural gas reserve holder in the world and the largest in Africa.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu, who made this disclosure in Abuja at the opening ceremony of the Nigeria Oil and Gas conference, said the government has initiated extensive gas expansion projects, which would contribute about 20 million tonnes of gas per annum to the country's projection.

He listed the on-going projects to include, Brass LNG, LNG Train seven and OK LNG. Yakubu disclosed that the country is expected to contribute 10 per cent to the global NLG production target, which is expected to hit 400 million tonnes by 2030.

He stressed that that the Federal Government is committed increasing the country's gas production in its attempt to meet the target on power generation.

"For instance, government has aggressive agenda for gas to generate 40,000mw of electricity. That plan will be powered by 78 per cent by gas, this means that more focus will be place on gas development. The focus of Presidential Taskforce on gas will attract potential investment in the country. 

There is a huge potential for the development of oil and gas sector".

He explained that Nigeria is concerned about contributing to the development of the global LNG market, where LNG is expected to grow by 400 million tonnes by the year 2030.

According to him, the country's gas production is expected to grow by 40 million tonnes, which is 10 per cent of global gas production. "This will be pursued through the development of gas projects such as Brass LNG in particular, LNG Train seven, and OK LNG. The Brass LNG and OK LNG are expected to contribute additional 20 million tonnes. 

These are parts of the opportunities we are pursuing in the industry. Again, there is a shift of focus to domestic gas consumption. The power agenda of the President on the gas revolution will also boost the development of the petroleum industry.

Nigeria is set to capture greater portion of LNG market in the world", he said.

Dwelling on the Trans-Saharan gas pipeline project, he disclosed: "The project, which is sub-regional initiative, is still on the drawing board. There are other issues that surround the development of that project, which has to do with market, as you know that gas project is market driven, that has to be put in the right perspective to enable it move.

Usually, when you are developing a project, look around the investment and environment, the domestic gas development has never hampered the development of Trans-Saharan gas project".

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Alison-Madueke Counts Gains of Nigeria’s Oil& Gas Industry As NNPC GMD Says Shale Gas No Threat to Nigeria Alison-Madueke Counts Gains of Nigeria’s Oil& Gas Industry As NNPC GMD Says Shale Gas No Threat to Nigeria The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke on Tuesday chronicled some of the remarkable strides in the oil and gas industry which have engendered growth and cross sectoral opportunities for investments in the country.

Delivering a keynote speech at the ongoing Nigerian Oil and Gas Conference in Abuja with the theme: Nigeria’s Oil &Gas Strategy in the Next Five Years-A New Dawn to Boost Investment and Production, Mrs. Alison-Madueke noted that the recent chain of positive activities in the sector has set the industry on the path of renewed growth and sustainable development.

In the Upstream sub-sector, the Minister listed the achievements to include; sustenance of the 2.4 mbpd crude oil production, increase in gas production from 6.3 to 7.8 billion cubic feet per day and decrease in gas flare to less than 11% compared to 30% in 2010 as well as the initiative to grow the National Oil Company, Nigerian Petroleum Development Company, NPDC, to a medium size oil and gas company.

"This has re-positioned NPDC as a dominant gas supplier to the domestic market with over 450 mmscfd in the Western Niger Delta. The latest being, the completion and supply of 65 mmscfd from the Oredo Integrated Gas Handling Facility, IGHF into the gas network in 2012,’’ the Minister said. On gas to power, Mrs. Alison-Madueke noted that the April 2012, 12-month Emergency Gas Supply Plan has contributed over 230 mmscfd for power generation and increased national power generating capacity by 30% to 4.2GW of power.

"Similarly, gas sales rose by more than 70% to an average of 4 billion standard cubic feet per day and for the first time, industry supplied more domestic gas than was consumed by the power and industrial sectors. Plan is to continue in 2013 to further increase power generation by additional 40% to 6.0GW through the addition of 450 mmscfd gas supply,’’ she sated.

In the downstream sub-sector, Mrs. Alison-Madueke stated that the efficiency of the refineries and petrochemical plants is being enhanced through human capacity development and establishment of best operating and maintenance practices ahead of the planned comprehensive Turn around Maintenance of the three refineries.

The Minister noted that despite the challenges of pipeline vandalism, the NNPC has embarked on aggressive revamp of vital pipeline arteries and depots to enhance product supply and distribution. In his address titled: Nigeria’s Oil & Gas Industry: Global and Domestic Context, the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Engr. Andrew Yakubu, stated that in spite of the industry-wide apprehension generated by the development of shale gas in the US and other jurisdiction, Nigeria’s role as a vital energy supplier remains unfazed .

"Although we are already thinking ahead by repositioning our exports in the light of these emerging threats, however there are some natural factors which would slow down the development of shale oil production outside the US,’’ Yakubu said. Some of the factors he listed include: High production cost, energy intensive production technique, uncertainty regarding estimates of technically recoverable resources, technical and environmental factors hampering development as well as extensive use of chemicals and water.

The GMD also listed waste water and ground water contamination, air and noise pollution, endangered species as well as loss of habitat as the main factor which bedevils the growth of shale gas/oil production.

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FURRY and fear have pervaded Ikarama community, located near Taylor Creek in Yenagoa local council of Bayelsa since Monday, when it was exposed to a strange odour suspected to be oozing from large-volume mixture of crude and gas in the area. 

The strange gaseous discharge was coming barely three weeks after another gas leakage caused an explosion in Ogboinbiri community in Southern Ijaw council area of the state. It is reported that the leakage occurred in an Agip onshore oil field facility near the Taylor Creek oil well.

Spokesman of Ikarama Development Committee, Mr. Washington Odoyibo, said in Yenagoa on Tuesday that the community noticed the development since Monday and regretted that the oil firm was yet to respond to it. 

“The sound from the spill site could be heard even from our community, especially in the night when the community is relatively quiet. That confirms that it is a really serious spill,” he noted. 

“It was on Monday that one of our community ladies returned from the bush and told us that there was a very serious oil spill spraying like gas into the air, along Agip pipeline. 

“As per the cause of spill, you can see with me that it is not easy to get closer to the spill point because of the way the whole environment is covered with crude oil fumes, hence one cannot even guess the cause.” 

According to him, members of the community were avoiding the leakage site for safety reasons and there were concerns about fire and inhalation of the toxic gas. When contacted on phone to comment on the development, Agip spokesman, Mr. Tajudeen Adigun, declined comments.

However, the Head of Operations at the National Oil Spill Detection and Response Agency (NOSDRA), Mr. Adeyinka Adewumi, said the agency was yet to get a report on the incident. 

And also reacting on the issue, the Head of Field Operations, Environmental Rights Action (ERA) in Bayelsa, Mr. Alagoa Morris, urged oil firms to lessen the pressure on the pipelines to reduce the discharge into the atmosphere.

Morris called for joint investigation of the incident by the operator of the oil field, community representatives and oil industry regulators, while the impacted site should be cleaned up promptly. 

He added that ERA had conducted a field trip on the impacted site and that the environment had been negatively affected by the incident

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The management of the Port Harcourt Refinery has assured the people of Ibuluya-Okrika in Okrika Local Government of Rivers State of their safety, following the gas leakage from the Nigeria National Petroleum Corporation's (NNPC's) pipelines.

The refinery's spokesman, Ralph Ugwu, confirmed the leakage. He said the area had been cordoned off , with the pipelines clamped and repairs being made. 

Ugwu said the leakage was as a result of the activities of vandals, who thought the product in the pipelines was fuel. Ugwu said: "The first thing we did was to cordon off the area and clamped the affected parts of the pipelines.

"The leakage stopped with the clamping." "Immediate repairs have been done. There will be no harm to the people. "The officials of the refinery have begun work." "The safety of the people of the area is guaranteed." The Chairman of Okrika Local Government, Tamuno Williams, said there was no cause f or alarm.

He assured that he had taken steps to ensure that gas eruption does not recur. The Chairman of the Community Development Committee (CDC) of Ibuluya-Okrika, Remember Chukwudi, called for government's intervention. 

But a source in Ibuluya-Okrika said the leakage could lead to fire.

The sources said: "The people of Ibuluya-Okrika are living in fear."

"Nobody cooks. We cannot put on lanterns and when motorcyclists get to the area, they must put off their bikes and push them, for fear of explosion."

"The management of the refinery is not maintaining the gas lines."

"The maintenance people came from the refinery and ran away, without doing anything.'

The people of the community are not safe. This is not the first gas leaking."

"We suffered a gas blowout in 2012. Do they want us to perish?"

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