One of the problems plaguing Nigeria is the instability of Electricity in the Country so as part of efforts aimed at improving electricity generation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) recently partnered some of the country’s major oil exploration companies such as Oando Plc, Shell Petroleum Development Company, Nigerian Agip Oil Company (NAOC) to work together on the “Seven Critical Gas Development Projects” which will enable Nigeria produce some 15,000 megawatts of electricity in two years’ time. The companies have signed an agreement to implement Gas Projects worth $3.7 billion.
The gas projects tagged: ‘Seven Critical Gas Development Projects (7CGDP)’ is set to bridge the gas supply shortfall in the country. The 7CGDP is an integral part of the gas development strategy designed by the NNPC to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020. The critical gas project, which is worth some $3.7 billion, will guarantee that about 3.4 billion cubic feet of natural gas are delivered per day.
The Chief Operating Officer of Oando Plc, Dr Ainojie Irune, disclosed while speaking at the event marking the commencement of the partnership that majority of the companies in Nigeria depend mainly on diesel for their energy needs and that gas utilization will ensure reduced costs and ultimately improve the country’s Gross Domestic Product.
The Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr Maikanti Baru, also noted that partnering the oil companies on the gas project will ultimately close the existing gap between demand and supply in the Nigerian gas market, that the domestic demand for gas is growing exponentially, outpacing the supply rate. What means that more efforts are needed to meet the demand.
We believe this partnership will definitely ensure that Nigeria’s abundant gas reserves are put into good use towards the improvement of the country’s struggling electricity sector.