It is with great pleasure that I welcome you to “The Decade of Gas” conference organized as a pre-summit conference of the forth coming 4th edition of the Nigeria International Petroleum Summit. Nigeria has been touted as a gas nation with little drops of oil but the country has focused on oil over the years. That is the paradox that this Administration decided to confront when we declared the year 2020 as “The Year of Gas”
in Nigeria. It was a bold statement to demonstrate the resolve of the FG that gas development and utilization should be a national priority to stimulate economic growth, improve Nigeria’s energy mix, drive investments, and provide the much-needed jobs for our citizens in the country.
Before the declaration of Year 2020 as The Year of Gas, this administration had shown commitment to the development of Nigeria’s vast gas resources and strengthening of the gas value chain by reviewing and gazetting policies and regulations to enhance operations in the sector as encapsulated in the National Gas Policy of 2017. Our major objective for the gas sector is to transform Nigeria into a gas-based industrialized nation and we demonstrated this through enhanced accelerated gas revolution. Remarkable progress has indeed been made to achieve the objective.
They include developing gas infrastructure, promoting domestic utilization of LPG and CNG, commencing the process of commercializing gas flares, development of industrial and transport gas markets, and increasing gas to power.
We also kickstarted other policies and projects like the National Gas Expansion Programme, Autogas policy and the construction of the 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline.
After a thorough review of these laudable achievements and successes in the gas space, we acknowledge that Nigeria still has more work to do on the gas space. Is the FG’s arrowhead in reduction of gas flaring in Nig. Its operations reduced gas flaring from over 65% to >20%, converting over 6.84trn cubic feet of Associated Gas to Liquefied Natural Gas (LNG) & Natural Gas Liquids (NGL) which otherwise would have been flared.
contributes about 1% of GDP, and over the years has contributed $114bn in revenue, $9bn in taxes, $18bn in Dividend to the FG, $15bn in Feed gas Purchase, and all these were achieved with 100% Nigerian Management and 95% Nigerian workforce.
It’s also noteworthy that among its several awards in the past, NLNG received the award for outstanding contribution to the Global LNG Industry in 2020 during the World LNG Summit because of outstanding business strategy to go ahead with Train7 project despite global pandemic. Global developments have indeed presented us an opportunity. Gas will become the dominant fuel for generating power not only across the world but in Africa as well. The question now is; Can Nigeria rise up to the challenge?The Ministry of Petroleum Resources and
NNPC group are in various regards setting the pace. I would like to charge all other relevant MDAs on the need to partner with the international oil companies, the indigenous oil companies and financial institutions to actualize the dream of transforming Nigeria into a gas-based industrialized nation.
Later this year, we will host the 4th Nigeria International Petroleum Summit in Abuja. This flagship event of the Ministry of Petroleum Resources, Nigeria will once more allow us engage our partners and friends from around the world to network and cross-pollinate ideas and set the tone for the next few years.
I would like to use this opportunity to formally invite you all to join us. It is, therefore, my privilege and honour to now launch the Decade of Gas Agenda and to declare this summit open. I wish you fruitful deliberations.
Thank you and God bless you all.