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Steps to Achieve ‘The Decade of Gas’

Article By: Elvis Eromosele

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Decade of Gas Nigeria
Gas flaring (Image: DW)

Nigeria is a study in contradiction. It has the largest proven gas reserve in Africa yet faces a significant challenge in providing access to gas for a majority of its citizens and businesses.

On top of this, it occupies an unenviable position as one of the top seven gas-flaring countries in the world, according to the World Bank. The tale would be unbelievable if it was fiction. 

Sadly, the reality is grim. Oil-producing companies burn off millions of cubic litres of natural gas during oil production.

They use a fancy term, gas flaring, to describe it. It doesn’t however take remove from the fact that the action, gas flaring, is a glaring waste of a wasting resource. It also impacts negatively on the environment, human health and the cost of gas. It needs to be stopped. 

Over the last couple of years, governments have sought to curtail incidents of gas flaring, increase the use of gas and boost revenue from it, all with varying degrees of success. 

To highlight the commitment of the federal government to boost the domestic use of gas among Nigerians as the primary energy source President Muhammadu Buhari declared the ‘Decade of Gas’ (January 1, 2021, to 2030). An integral part of the process is the development of gas infrastructure, with the construction of the 614km Ajaokuta-Kaduna-Kano gas pipeline the number one starting point. 

The goal is simple, to increase the domestic utilisation of LPG and CNG, commercialise gas flares, develop industrial gas markets and increase gas-to-power. Related policies which are already in the works include the National Gas Expansion Programme and the Autogas policy. 

Experts argue, however, that despite the government’s best efforts to increase the distribution of liquified petroleum gas (LPG), also known as cooking gas, a large number of Nigerians still rely on firewood and charcoal for cooking with the attendant damage to the environment and impact on the climate.

Now one of the main reasons for this is the lack of infrastructure and distribution networks for LPG. Many areas in the country do not have access to gas pipelines, making it difficult for residents to obtain cooking gas.

We’ll require a study to explore the risk associated with the current gas tank retail marketing method. Additionally, the cost of LPG is prohibitively high for low-income households, who make up the bulk of the population.

Figures from the National Bureau of Statistics (NBS) show how deep the poverty is – 63 per cent of persons living in Nigeria (133 million people) are multidimensionally poor. It’s a grim picture. 

GlobalData reports that by flaring, rather than utilising gas for power generation or other domestic needs, Nigeria and other nations involved in such acts, could lose up to $82 billion a year globally. Other countries in this unholy group include Algeria, Angola, Indonesia, Iran, Iraq, Libya, Malaysia, Mexico, Russia, the US and Venezuela. They accounted for over 87 per cent of all flared gas in 2020. 

Independent sources reveal that Nigeria flared an average of 11.1m3/bbl of gas in 2021. The issue here is that the Nigeria Gas Flare Commercialisation Programme (NGFCP), which seeks to curb the act, has loopholes along with low and weakly enforced penalties. It needs to be tightened and strengthened to make it more effective. 

Nigeria had 208.62 trillion cubic feet (TCF) of gas reserve as of January 2022, according to the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, an engineer. However, the development of gas, especially for domestic use, is still relatively low.

The price is still in the skies for many potential users. Right now, the concern is that with the rising cost of cooking gas, the domestic utilisation of LPG may decline. It remains to be seen how this will impact the achievement of the ‘Decade of Gas’ objectives.  

There are several steps that the government can take to increase access to cooking gas for Nigerians. As a concerned citizen and cooking gas user, here are my thoughts on five things that the government can do to improve access to natural gas:

Firstly, the government must invest in building pipelines and distribution networks to reach residential and business areas and improve access to LPG.

Secondly, while the country has significant natural gas reserves a lack of investment in the sector has led to low production of LPG. It is time for the government to encourage investment in the sector to increase domestic production and thus curb the importation of LPG.

In addition, to demonstrate the resolve to improve the use of gas among citizens, the government can look at providing subsidies for LPG to make it more affordable for low-income households. This will make it more accessible to those who currently are unable to afford it.

Furthermore, since reports indicate that Nigerians are unaware of the benefits of using LPG as a cooking fuel, the government can launch a campaign to educate citizens on the benefits of LPG and how to safely use it.

Finally, the government must create an enabling environment to encourage private sector participation and investment in the LPG industry. This will increase the availability of LPG and possibly help drive down prices.

With the implementation of these measures, Nigeria can truly increase access to cooking gas for a majority of its citizens and reduce the country’s dependence on firewood and charcoal. This will not only improve the quality of life for citizens, but it will also help the environment by reducing deforestation and air pollution caused by the burning of firewood.

Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

GrassRoots.ng is on a critical mission; to objectively and honestly represent the voice of ‘grassrooters’ in International, Federal, State and Local Government fora; heralding the achievements of political and other leaders and investors alike, without discrimination. This daily, digital news publication platform serves as the leading source of up-to-date information on how people and events reflect on the global community. The pragmatic articles reflect on the life of the community people, covering news/current affairs, business, technology, culture and fashion, entertainment, sports, State, National and International issues that directly impact the locals.

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Energy

AVEVA Appoints Joanna Mainguy as New Sustainability Accelerator Director

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Joanna AVEVA
Joanna Mainguy, Sustainability Accelerator Director at AVEVA
  • Joanna Mainguy will steer strategies for sustainability innovation across AVEVA’s portfolio and partner ecosystem, furthering ESG targets for 2025 and beyond

AVEVA, a global leader in industrial software, driving digital transformation and sustainability, today announced the appointment of Joanna Mainguy as Sustainability Accelerator Director.

Joanna’s appointment testifies to AVEVA’s dedication to strengthening the company’s sustainability impact in line with advancing global climate commitments. 

As Sustainability Accelerator Director, Joanna Mainguy will focus exclusively on sustainability solutions and strategies to accelerate innovation that will help AVEVA’s customers to achieve their net-zero targets.

She will look at how AVEVA leverages current market and customer analysis to inform its in-house development team, advise on new customer collaborations and on how AVEVA should grow its partnership network and M&A pipeline to reflect its sustainability priorities.

Joanna will lead the implementation of a sustainability solutions plan tailored to meet the most pressing needs of AVEVA’s industrial customers on low-carbon transition, circularity and resilience, via an integrated product, marketing and sales approach. She will work closely with AVEVA’s portfolio, business area and R&D leads to continue to develop new sustainability capabilities and drive collaboration on go-to-market initiatives that support industry with contributing to an accelerated energy transition and shift to a circular economy.

Joanna was formerly Industry Director, EMEA, for Energy & Sustainability at Microsoft, where she led strategic engagements with major energy providers and supported the energy transition with digital solutions. She has worked across the entire energy value chain and has more than 15 years of experience in process industries and the energy sector, including work for major system integrators, software and energy companies.

Lisa Wee, Global Head of Sustainability, AVEVA, said: “We are excited to welcome Joanna to AVEVA. She will bolster our mission to enable faster uptake of existing sustainability solutions across the industrial landscape, while in parallel we continue to invest in product capabilities and partnerships that will push out the frontiers of sustainability innovation for industry. At AVEVA we look to lead by example on sustainability and we achieved a 93% reduction in Scope 1 and 2 emissions last year. We aspire to help our customers better leverage digital solutions to realize their own ambitious sustainability targets early, and Joanna brings a wealth of experience to help support this.”

Commenting on her appointment, Joanna Mainguy, Sustainability Accelerator Director, AVEVA, said: “I am delighted to join AVEVA at such a pivotal time in its sustainability innovation and growth trajectory. I look forward to working with AVEVA teams and customers to continue to grow the sustainability benefits that can be achieved with AVEVA software. I am also keen to work closely with our partners to drive further positive change at scale, since we know addressing the climate crisis will continue to require expanded collaboration”.

AVEVA actively embeds sustainability into its core product strategy with specific capabilities in its software portfolio.

AVEVA’s software enables organizations to connect and contextualize key sustainability data with artificial intelligence and human insight, enhancing their agility, resilience and sustainability in order to help drive responsible use of the world’s resources.

AVEVA’s 2023 Sustainability Progress Report reveals significant progress across all three pillars of the company’s sustainability framework, encompassing product strategy, operations and culture. 

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Climate Change: NNPC Ltd/Total Energies JV Achieves Zero Gas Flare

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In pursuit of meeting the targets of 20% (unconditional) and 47% (conditional) greenhouse gas emission reduction as contained in the Nationally Determined Contribution under the Paris Accord signed by the President Bola Ahmed Tinubu administration, the NNPC Ltd/TotalEnergies Joint Venture has achieved zero routine gas flare in all its assets.

According to a statement signed by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., this feat was announced on Thursday during an inspection tour of OML 100 in South-eastern Niger Delta, off Port Harcourt, by a joint NNPC Ltd and TotalEnergies Team to ascertain the success of the OML Flare Reduction Project launched in December 2023.  

The NNPC Ltd/TotalEnergies Joint Venture, which is the concession holder of four leases, had hitherto achieved zero routine flaring across OML 99 (2006), OML 102 (2014), and OML 58 (2016), leaving OML 100 as the only lease with routine flaring going on.

The significance of this achievement is that the last routine flare volume of about 12MMscf/d (twelve million standard cubic feet per day) of gas has now been eliminated giving rise to a greenhouse gas emissions reduction of about 341KtCO₂e/yr.

The achievement is an outcome of a programme introduced by the NNPC Ltd to galvanize action towards achieving the zero routine flare by 2030 across its portfolio of assets.

It is also a testament to NNPC Ltd’s prioritization of sustainability anchored on the ‘first R’ of its 5R Strategy (Reduce, Replace, Renew, Re-plant, Repurpose), as it strives to reduce its carbon footprint.

Work is ongoing across all other assets within NNPC Ltd’s Upstream Directorate to ensure that all assets achieve zero routine flaring by 2030 or earlier.

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NNPC Celebrates 14,000bpd Production from Akpo West Field

By SANDRA ANI

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In line with President Bola Ahmed Tinubu’s directive to the Nigerian National Petroleum Company Limited (NNPC Ltd) to optimise production from the nation’s oil and gas assets, the Company has announced the successful commencement of oil production from the Akpo West Field.

The milestone, which is the result of meticulous planning, strategic collaboration, and unwavering dedication from all stakeholders involved in the project, will add 14,000 barrels per day condensate to the nation’s production. This will be followed up by the production of about 4million cubic meters of gas per day by 2028.

The development of Akpo West which is on Petroleum Mining Lease (PML) 2 (formerly OML 130) leverages the existing Akpo Floating Production Storage and Offloading (FPSO) facility via a subsea tie-back to keep costs low and minimize greenhouse gas emissions.

The milestone was enabled by the strategic leadership of the Group Chief Executive Officer (GCEO), Mr. Mele Kyari, and the Upstream Directorate of the NNPC Ltd whose support played no small role in propelling the operators to actualise the short- and mid-term hydrocarbon production goal of the President Tinubu administration.

Located 135 kilometres offshore, Akpo West is one of the discoveries on PML 2 with proximity to the Akpo main which started up in 2009 and produced 124,000 barrels of oil equivalent per day in 2023.

PML 2 is operated by TotalEnergies with a 24% interest, in partnership with CNOOC (45%), Sapetro (15%), Prime 130 (16%), and the Nigerian National Petroleum Company Ltd as the concessionaire of the Production Sharing Contract (PSC).

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