7 September 2017

Nigeria: Total, Greenville Float Virtual Pipeline to Boost Domestic Gas Supply

Total Exploration and Production Nigeria Limited (TEPNG), and Greenville Oil and Gas Limited have floated an initiative that will process raw gas into domestic Liquefied Natural Gas (LNG) to boost power generation and industrialisation in the country.

The agreement is expected to deliver 74 million standard cubic feet (scf/d) of gas to Greenville $50million Mini-LNG facility in Rumuji in Rivers State.

Speaking at the signing of the Gas Sale and Aggregation Agreement (GSAA) in Abuja, with Greenville, TEPNG, and Gas Aggregation Company Nigeria (GACN), Greenville Chairman, Eddy van den Broeke, said the project would generate 2,000 direct and 5,000 indirect jobs, and revive the textile industry in Kaduna, and Kano axis.

He added: "This project has the capacity to create up to 2,000 direct jobs (and 5,000 indirect jobs). It also provides an avenue for seamless movement of gas to stranded locations across the country. It will reduce greenhouse emissions from gas flaring. It will facilitate the use of gas for power generation. It also has the capacity to revive gas-based industries, large industrial ventures and transportation. The project will significantly contribute towards the displacement of more harmful and expensive fuel sources and conserve much needed foreign exchange. The improved economic activity also increases the Federal Government revenue base, and supports the administration's revenue diversification agenda."

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, noted that the $500million Mini-LNG facility apart from ending gas pipeline vandalism, the sales agreement would end disparity between the prices of gas in the southern part of Nigeria and the north, and also revive job creation initiatives.

He said: "I think this is a milestone in our journey at ensuring that gas plays a major role in our industrialisation. Apart from reducing attacks on gas pipeline, this will also ensure that gas price is uniform across the length of this country. There are so many industries that have died as a result of power supply in the northern part of the country. So, this agreement would help us mitigate that."

On his part, the Managing Director, TEPNG, Nicolas Terraz, said the NNPC|TEPNG would supply 74million scf/d to Greenville from the OML 58 in River state.

He hinted that gas supply to Greenville would commence soon, adding, "it will provide cleaner energy to local industries and reduce emission of greenhouse gases, the by protecting our environment. Undoubtedly, the signing of this agreement is a new demonstration of our support to the Nigerian Government's objectives to develop local industrial capacities, encourage direct foreign investments, and boost Gross Domestic Product growth in line with the President's agenda on gas-based industrialisation."

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