President Tinubu Approves an Additional 500 Million Standard Cubic Feet of Gas to Address Power Shortages

The Federal Government is considering putting an extra 500 million standard cubic feet of gas into the domestic market to address Nigeria's power shortages.

According to the government, expanding the country's gas supply would boost industrialization and create more jobs.

On Wednesday, President Bola Tinubu made this announcement during the opening of three significant gas infrastructure projects in Kwale, Delta State, and Ohaji-Egbema, Imo State, which the Nigerian National Petroleum Company Limited, Seplat Energy, and other partners are carrying out.

The President revealed that more material was planned for the country's gas-fired thermal power plants when he announced the further development of the AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3 km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline projects.

Tinubu aimed to use Nigeria's abundant gas reserves to spark its economic boom and resurrect its industrial development.

"It is pleasing that approximately 500MMscf of gas in aggregate would be supplied to the domestic market from these two gas Processing plants, which represents over 25% incremental growth in gas supply. In practical terms, this translates into more gas for the power sector," the President said.

Tinubu claimed that he had made it clear from the moment he took office that his administration planned to use the country's nearly limitless gas reserves to boost energy production, revive industries, and generate many job opportunities for economic growth.

In addition, he pointed out that substantial progress has been made in encouraging petrol development through Presidential Executive Orders and the Presidential Compressed Natural Gas Initiative, which attempts to transition Nigerians off of petrol and diesel as their primary vehicle combustion fuel.

He added,

"The theme of this inauguration – 'From Gas to Prosperity; Renewed Hope,' must be adopted by all gas-sector participants and would-be investors as a clarion call to ramp up efforts to accelerate investment and the development of projects in the gas sector on a win-win basis.

"I would once again commend the efforts of NNPC Ltd, alongside SEEPCO and Seplat Energy, on this business partnership initiative and congratulate you all on the successful implementation of the three projects."

President Tinubu described the event as a significant milestone for Nigeria, demonstrating his administration's efforts to accelerate the development of critical gas infrastructure to enhance the energy supply.

According to him, the projects aligned with the federal government's Decade of Gas initiative and the administration's goal of increasing the value of the country's abundant gas resources while accelerating industrialization and curtailing gas flaring.

The President reassured investors that his government was committed to enhancing the "ease of doing business" in Nigeria's oil and gas industry.

Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), had earlier in his speech emphasised the ministry's efforts to keep using gas as a transition fuel as Nigeria moves towards achieving clean energy security and efficiency by 2060.

Ekpo thanked the President for his guidance and assistance ensuring the three projects' success.

The Kwale Gas Processing Plant, which supplies the domestic market with gas at a rate of about 130MMscf/d, is expanded into the AHL Gas Processing Plant 2. 

The OB3 Gas Pipeline will deliver lean gas to the processing plant, designed to process 200MMscf/d of rich gas.

This additional gas supply will help Nigeria's rapid industrialization and reduce its reliance on imported liquefied petroleum gas by producing roughly 160,000 MTPA of propane and 100,000 MTPA of butane."

NNPC Limited and SEEPCO are developing the AHL Gas Plant through an incorporated joint venture called AHL Limited.