Nigeria's current undiscovered gas potential is 600 trillion Cubic Feet (TCF), the Nigerian National Petroleum Corporation (NNPC) has said.
The Group Executive Director/ Chief Operating Officer, Gas and Power Companies, NNPC, Engr. Saidu Mohammed, in a paper titled: "Re-Evaluating the Development of the Nigerian Gas Industry", said that Nigeria has a huge economic potential trapped in its vast natural "Currently number 9th largest Proven gas reserves in the world", he added.
According to him, despite the huge gas potential in the country, the sector has not been able to contribute significantly to power generation due to pipeline vandalism.
Muhammed said that gas supply to power increased significantly at the beginning of the year with a record peak power generation of 5079MW (80 per cent thermal generation) on February 2nd 2016.
He noted that due to the recent incessant willful attacks on the country's gas pipeline, gas supply has significantly dropped from 1400mmscfd to barely below 700mmscfd.
He said: "As we stand today, there is enough gas supply capacity to support a steady generation of 5500MW today but we are presently at an average of 2600MW due to pipeline vandalism", he added.
Muhammed expressed government's commitment towards the implementation of the gas master plan.He said that the aspirations of the Nigeria gas master plan were to reposition the country in the shortest possible time as a regional gas supply hub with concurrent presence in the domestic, regional and export market.
"To accomplish this, it aims to create a fully liberalized market within five years which is underpinned by a robust, scalable and fully connected gas infrastructure that supports the 3 markets concurrently and cost-effectively - gas from any source can get to any market.
"Transformation of the domestic market into a vibrant and fully commercial gas market where the gas price stimulates investment in supply and the sustainability of the market to compliments the other regional and export LNG markets, enabling a balanced portfolio.
"Attracting a more widespread participation by new players so as to stimulate competition and efficiency", it added.To support the gas agenda, Muhammed disclosed that the Federal Government has embarked on an aggressive policy framework revamp to create an enabling investment environment.
He said that a key element of the gas pricing framework in the master-plan was the introduction of sector based pricing and the gradual move towards export parity in domestic gas pricing.
Muhammed said that between 2016 and 2020, NNPC would ensure that all existing power plants are connected to permanent gas pipeline; resolve community interference through aggressive dialogue and engagements with stakeholders; the immediate intervention is to repair the damaged ELP A and restore gas supply to the west; and ensure delivery of the Nigerian Petroleum Development Company (NPDC) and International Oil Companies (IOCs) short term projects.
He said that the corporation hope to complete ELP II and OB3 Gas Pipeline Projects; secure funding to actualize the identified upstream gas development that will enable additional 7BCF/D gas supply to meet the projected demand by 2020; complete the PSC gas terms to enable market the huge offshore gas resources.