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2008 gas
flare-down date is achievable, says Kupolokun
By Bassey
Udo,
Senor
Correspondent, Abuja
With
concerted efforts at executing several gas utilisation and export projects
by government in conjunction with its joint venture partners, Group
Managing Director, Nigerian National Petroleum Corporation (NNPC) says
2008 flare-down date is achievable.
Kupolokun,
who was speaking on Tuesday on Current Flare Reduction Activities in
Nigeria at the opening of a two-day Global Gas Flaring Reduction (GGFL)
workshop in Abuja, identified the projects currently being executed by
Shell Petroleum Development Company (SPDC), Chevron Texaco Nigeria Limited
(CNL), Mobil Producing Nigeria Unlimited (MPNU), Nigeria Agip Oil Company
(NAOC) and Elf petroleum Nigeria Limited (EPNL).
SPDC is
currently executing the Cawthorne Channel and Forcados-Yokri Associated
Gas Gathering (AGG) projects that would supply 210million standard cubic
feet of gas per day (mscf/d) and 108 mscf/d respectively to train 3 of the
Nigeria LNG project; Afam Power plant, to utilize 250mscf/d; South swamp
AGG, 120mscf/d, as well as Gbaran Ubie, to deliver 1bscf/d to trains 4, 5
and 5 of the NLNG.
Chevron is
currently handling phase 3 of the Escravos gas project (EGP-3), to supply
249mscf/d of AG along with 140mscf/d of non-associated gas (NAG) for
liquid extraction as well as Escravos Gas-to-Liquid (EGL) to convert
300mscf/d from EGP-3 to 34,000 bpd of diesel, condensate, naphtha and
Liquefied Petroleum Gas (LPG).
Apart from
its East Area gas projects, Mobil is carrying out the Qua Iboe Terminal
(QIT) gas project to supply about 50mscf/d of gas to OSO NGL.
Agip is
also carrying out projects to supply about 164mscf/d of gas to NLNG train
3 as well as the Kwale/Okpai Independent Power project (IPP) that would
utilize about 80mscf/d of gas for power generation.
Besides,
Kupolokun said the four thermal power stations currently being executed by
the Federal Government at Geregu in Kogi state, Omotosho in Ondo,
Papalanto, Ogun and Alaoji, Abia, would take another 500mscf/d in their
operations from 2006.
He said
though the nation currently produces 1879billion cubic feet per year
(bcf/yr), about 1080bcf/yr is utilized, while about 799bcf/yr, or 42.6%,
is flared.
Describing
as impressive the 20.3% gas flare reduction ratio in the last four years,
Kupolokun said there were still opportunities to monetize its gas
resources, though he said the $14billion cost required for development of
gas infrastructure pose a major hurdle.
Presidential
Adviser on Petroleum and Energy, Edmund Daukoru, said that in view of the
strategic importance of gas resources to the development of the nation�s
economy, government was committed to put in place number of legislations
to encourage gas production and utilization.
Daukoru,
who was represented by the Special Assistant to the President on Petroleum
and Energy, Jafa�ru Paki, listed the legislations to include Petroleum
Amendment Act, Associated Re-Injection Act, Associated Gas Re-Injection
Amendment Act and Associated Gas Framework Agreement.
A
representative of the World Bank, co-sponsors of the workshop, Bent
Svensson, said Nigeria currently accounts for 20% out of the total volume
of 100bcm/yr of the global venting and flaring figure, pointing out that
though governments and companies have initiated steps to reduce gas
flaring, there were still barriers as a result of absence of formal gas
policy, industry structure and regulatory framework, fiscal regime, gas
pricing and funding constraints.
He
advocated increased stakeholders'cooperation, government funding of
strategic projects, development of a gas plan as well as fiscal
reforms.
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