Nigeria is translating its critical thinking in gas development to actual investment in line with the declaration of 2020 as Year of Gas for Nigeria, by Minister of State for Petroleum Resources, Timipre Sylva, writes Yemisi Izuora

At the beginning of the year, the Minister of State for Petroleum Resources, Timipre Sylva, declared 2020 as the Year of Gas for Nigeria.

Matching words with action, the year began with impressive move to harness Nigeria’s gas by tackling some of the barriers including the passing a regulatory framework for the upstream sector and the launch of the Nigerian Gas Transportation Code to further drive gas-based industrialisation.

As March approached, the industry experienced a sharp drop in oil price at $24.63 Brent and then to $16.95 Brent in April. Covid-19 had impacted lives and business in unprecedented measure. Many plans were put on hold and a new global mantra of cost cutting for survival emerged.

This however did not deter planning and execution of measures aimed at actualising laid down action plan.

The country scored big mark in its intent to forge ahead, when news of Nigeria Liquefied Natural Gas, NLNG awarding a $4 billion EPC contract for the Train 7 project to Saipem, in a joint venture with Daewoo E&C Co. Ltd. and Chiyoda Corp., was executed.

It was a cheering news as it was considered key to progression of plans to further develop the industry, and therefore world economies. The awarding of the contract signified a key milestone in the advancement of the project and sparks plenty of optimism for Nigeria amidst a global pandemic.

Once operational, Train 7 will add around 8 metric tonnes per annum (mtpa) of capacity to the Bonny Island facility, taking the total to around 30 mtpa. This moves Nigeria’s global position to the 3rd largest exporter of LNG.

Tony Attah, MD & CEO of Nigeria LNG, speaking on the EPC contract during the dmge Africa Energy Series: Spotlight Interview stated that, “The FID for Train 7 & award of its EPC contract is… very reassuring as it renews our hope that Nigeria LNG will maintain a significant market share in the global gas market and will continue to reap the potential benefits in the market.

 

Source: Oriental News

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