July 13, 2024

Nigerian Government urges EU to leverage on PIA to enhance its LPG needs

Oredola Adeola

The Nigerian government has opened a window of opportunities for the European Union and other international investors to leverage on the enabling environment provided by the Petroleum Industry Act (PIA) to invest in Nigeria’s gas sector, even as Russian gas supplies are cut off from Europe.

Nigerian delegates made this known at the Gastech Exhibition and Conference 2022 in Fiera Milano, Italy, on the sideline of the economic fallout of the Russia-Ukraine war, which has upturned major development in the global economy.
EnergyDay gathered that the Nigeria’s delegates advanced the investment potential of Nigeria’s LNG due to Russia’s unscheduled maintenance works on the Nord Stream 1 pipeline, which runs from Russia to Germany via the Baltic Sea, deepens a gas dispute between Russia and the European Union.
Timipre Sylva, Minister of State Petroleum Resources, while speaking in a ministerial panel session at the ongoing Gastech Exhibition and Conference noted that the Nigerian Petroleum Industry Act (PIA), which has provided a clear fiscal framework for gas development, there will be more exploration for gas and we will be able to increase our gas reserves.”

Sylva also said that Nigeria will become one of the major players in the gas market as the federal government is taking some bold steps as well as increasing investments in LNG.

The Minister said, “Today, we are seeing that gas is weaponized and every country requires some alternative supply.

“Nigeria is positioning herself to become an alternative supplier to Europe. We are already working with Algeria to build the Trans-Saharan gas pipeline that will take our gas to Europe.

“We are also having a partnership with Morrocco to extend the West African gas pipeline to Morocco and the Mediterranean which will take gas to Europe.

‘It is a win-win for all of us and it’s in their interest to reduce this discriminatory investment that the European banks are doing”.

Sylva however encouraged the EU to provide the appropriate policy framework that enables investments in oil and gas from European investors and financial institutions.

Senator Margery Chuba-Okadigbo, Board Chairman, Nigerian National Petroleum Corporation Limited, NNPC Ltd, while speaking during the Global Business Leaders Panel titled “From Short Term Results to Long-Term Commitments: How is the Energy Industry Changing the Net-Zero Narrative?” revealed that the development of Nigeria’s abundant gas resources remains crucial to attaining the country’s low-carbon energy commitments.

She described Nigeria as a country known in the Industry as a gas province, with proven reserves as of January 1st, 2022, is 209.5 Trillion Cubic Feet (TCF), the largest in Sub-Saharan Africa and the top 10 in the world. Nigeria also has over 600 TCF of unproven gas reserves.

Mr. Mohammed Abdulkabir Ahmed, NNPC Ltd, Group Executive Director, Gas & Power, speaking during the Global Business Leaders Panel which discussed “Bridging the Project Funding Gap in a Time of Geopolitical Uncertainty”,  said funding is crucial to the development of gas and power investments.

According to him, the absence of funding for gas and power sector investment could affect the feed gas for LNG and other gas processing plants.

He said, “Someone has to do it. Several efforts have been put in place to enhance investment. Nigeria remains challenged by infrastructure to deepen gas utilisation.
“Feed gas into many gas plants being built cannot happen without the upstream segment. We need to depart from main export to domestic consumption.

“Also, gas-based industries need to mature to aid off-take. There is a large potential in domestic market consumption but needs investment. Identified projects need funding.

“We seek investment in the sector. There’s a level playing ground with the liberalisation in the upstream through the PIA for investors,” he added.