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The recent commencement of construction of Train 7 plant of the Nigeria Liquefied Natural NLNG has been praised by industry experts, especially the out-going managing director and chief executive officer MD/CEO of the company, Engr. Tony Attah as the main catalyst for the achievement of the Federal Government’s “very ambitious Decade of Gas Programme,” writes our special correspondent, Joel Anekwe.
An Overview:
On June 15 2021, President Muhammadu Buhari performed the groundbreaking of construction of the Train 7, of the Nigeria Liquefied Gas NLNG, Limited in Bonny Rivers State. The construction of the Train 7 is coming almost 15 years after the construction of the Train 6 even though the vision for Train 7 began immediately after the completion of the Train 6 sometime in 2007.
The significance of this project besides its huge economic benefits is hinged on its importance to the pursuit of Nigeria’s aspiration to rank among leading gas nations of the world like Russia and Qatar.
Therefore, this has made delivering the Train 7 the overriding passion of the managing director/chief executive officer (MD/CEO) of Nigeria LNG Limited (NLNG), Engr. Tony Attah forcing him to capitalize on every opportunity at every forum to promote the delivery of the project and in fact other trains after the Train 7.
This is because he believes that the future of Nigeria is gas. At the Nigeria International Petroleum Summit NIPS, 2021 held recently in Abuja Attah declared; “As a country, the future of Nigeria is gas. Which is why we offer the Train 7 as an opportunity for that development, which I hope in this Decade of gas, will happen. We are looking at 35% capacity growth from 22-million tons to 30-milion tons and that is what Train 7 will deliver. I personally was very happy with Train 7. We were so excited until we found out that while we are growing by 35% capacity from 22-million tons to 30-million tons, Qatar at 77-million tons wants to add 30. So essentially our whole existence when we have finished Train 7 is Qatar’s incremental and that for me just makes Train 7 no longer ambitious and we as a nation on the back of the Decade of Gas must talk about Train 8,9,10,11 and 12. We take what we have at Train 7 with $10-billion foreign direct investment FDI coming, and more than 12,000 direct jobs. The Executive Secretary of NCMDB has confirmed to us that with the 12,000 direct jobs, there could be a spill-off of more than 30,000 additional jobs as a result of the project in addition to opportunities for local contractors and our people to participate”.
Train 7 Imperatives for Delivery of the Decade of Gas Programme 2021-2030.
Attah’s declaration above, certainly signposts the Train 7 as the star project for the achievement of the goals and aspirations of the “Decade of Gas” programme declared by President Mohammadu Buhari on March 29, 2021.
The programme was designed to ensure that Nigeria, Africa’s largest oil producer can take advantage of the global energy transition, capitalizing on its huge endowment with natural gas reserves.
Standing at a reserve of 206.53tcf and proven capacity of over 600tcf it is apparent that with adequate attention and development of the gas capacity of the nation, Nigeria can easily compete with other leading gas producing countries of the world.
Besides, it also is expected to lead Nigeria to the much needed economic, social, industrial and technological development and advancement.
The launch comes just as the government is pushing through some major reforms for the sector- notably the long awaited Petroleum Industry Bill (PIB) expected to see the biggest transformation of Nigeria’s energy industry in decades.
The impetus for the declaration of the Decade of Gas derives from the successes recorded from the dedication of the year 2020 as the year of gas.
From the results achieved with the year of gas, which points to the fact that natural gas which has seen countries like Russia and Qatar reap huge benefits in terms of industrialisation and economic growth and has been variously regarded at industry and government quarters as either transition or destination resource will definitely play very significant role in the global drive for energy transition from fossils to other cleaner sources energy.
Imperatives of the Decade of Gas:
In Nigeria, the standard bearer of the development of gas is no doubt Nigeria LNG Limited (NLNG) Limited and it is to continue to lead the drive to address most of the country’s economic, industrial and social problems capitalizing on the implementation of the Decade of Gas programme.
Speaking at NIPS Abuja 2021, the NLNG MD/CEO highlighted the leading role LNG would play to achieve the goals for which period 2021-2030 has been designated as the “Decade of Gas”.
He began on this note; “The world needs more energy, but the world now needs it cleaner, the world also needs it cheaper, the world wants it more”.
He explained that this has been made imperative by the growing world population which inadvertently has continued to make huge demands for energy (though in its cleaner state).
Attah said; “Our world is changing. Today we have about 7.8-billion people on earth but by 2050, there will be 10-billion of us on this planet. Just think about adding one new China, one new India to the world or adding two new Africa’s, as it were. The conversation is where would the energy come from?
He pointed out that there is a forecast that the energy demand will increase by 30% saying that it would have been cheery news for the oil and gas industry. “But the world is changing. We are now faced with existential challenges around how humanity will survive against the backdrop of global warming and climate change. So the focus has changed today from just needing energy to actually protecting the planet and balancing the sustainability tripod of economies, society and indeed environment”, he noted.
“But we took the great challenge, yes, the world needs more energy, but the world now needs it cleaner, the world also needs it cheaper, the world wants it more so some say it’s a dilemma, I think it’s a “trilema”.
There is also the additional challenge of getting energy in a cleaner form which has set a new way of sourcing and providing the energy giving rise to what is now called energy transition.
The NLNG boss however, observed that energy has been in transition forever. “Today we are talking energy transition and changing energy mix and a lot of people are expressing surprise, but the reality is that energy has been in transition for a life time”.
But the solution opportunity, he said, has shown itself on the back of renewables and there are massive opportunities even when it comes to renewables for us as Nigerians.
The Position of Nigeria in the Energy Transition Mix:
The big question at this point is, where does Nigeria find herself in the energy transition conversation? Where are we with technology, what is going on? As countries are taking positions in terms of how they will decarbonize and go to the next zero?
The world is moving on and the question will be to Africa in today’s reality when even fossil fuel is even acceptable. More than 50% of Africa has no access to electricity. More than 85% has no access to clean energy source for their daily needs. So how will Africa position? I personally believe that Africa will be by far better on the back of gas. Reduce the carbon dioxide intensity but then providing the requisite energy and I think that is the biggest opportunity for Nigeria”.
Potentials and Opportunities for Nigeria in the Decade of Gas.
Attah believes that the whole of the African continent provides opportunity for Nigeria to capitalize on its huge gas resources to become the major supplier of energy.
With the continents massive gas reserves, it should be repositioning on the back of this Decade of Gas to look at, not quite taking over Africa but look at taking over supply of Africa’s energy needs.
“Nigeria is so blessed” he noted, adding “We are the largest oil and gas exporter in Africa. A lot of times when you ask people what is Nigeria’s biggest resource, they quickly tell you the oil and gas. Our biggest resource and our biggest opportunity is our people. 200 million people and as the world is growing to 10 billion, the forecast for Nigeria is 400 million. Somebody is asking where them go stay?
The risk is that in another 50 to100 years, with technological advancement and improvements many conversations will be around who needs your oil or how much do I pay for your gas? And that is why I like to quote Richard Quest who said; “it’s not about what you have it’s about what you do with it. I think it’s time to accelerate, I think it’s time to be very deliberate to push the frontiers of gas, to maximize value from the gas that we have today.
Role of the Nigeria LNG Train 7 and Passion of the managing director, Tony Attah in achieving the aims of the Decade of Gas Programme.
It goes without saying that the NLNG being the driving force of Nigeria’s gas development will also be the major driver of the Decade of Gas programme and fortunately for the country, the company is not only ready but is also passionate to drive the for the realization of the dreams of the Decade of Gas Programme.
The NLNG boss goes ahead to highlight the strategic role the company would play in all of this.
“We are ready at Nigeria LNG”, he declared. “But today we believe in the very ambition of this Decade of Gas and we continue to offer ourselves as the receptacle, leading the way in terms of whatever is developed. We do not own gas reserves. We do not own wells so we buy gas. We are an opportunity for the upstream. We are the catalyst for development; we are by far the largest off-takers today. Over the last 20 years we have managed over 5000 LNG cargoes across the world, deploying our 23 ships which we are very proud about.
“As I said we are 6 trains, 22 MPTA capacity. We have generated more than $110-billion revenue and contributed more than $35-billion in dividend to government and over $8-billion in taxes since we became a tax payer.
“Our quality is established by the recognition in 2019 as the Company of the Decade. I think we concretized that last year when the LNG World recognized us as the most contributor of LNG in the world. Beyond monetizing Nigeria’s gas we have contributed to reduction in operational gas flaring to the extent that we brought it down from the 65% which put us at number 2 gas flaring nation behind Russia for a long time to less than 10% to the extent that today on that ignominious league table of gas flaring nations, we are number 7. And I think that with our Train 7 coming we should continue. It is an inspiration to continue to go down by mopping up this gas”.
“I like to talk about how we contribute. Today we deliver about 40% of LPG into Nigeria from out of Bonny. Our highest delivery of about 376,000 tons but are now mandated to deliver 450,000 tons and just recently we signed some Sale Purchase Agreements SPAs with three Nigerian companies to bring LNG into Nigeria for the first time. So we at Nigeria NLG are set to change that narrative by continuing to bring in more gas.”
“Our future is gas. As a country, the future of Nigeria is gas. Which is why we offer the Train 7 as an opportunity for that development, which I hope in this Decade of gas, will happen.
“We must raise our game to make this count. Speed is of essence and the time, in my view is now. But we know that it is possible. As I said earlier, Qatar has done it, growing from a poor fishing country to a gas giant. I believe we can do it. Qatar did it in 10 years; this is why I believe that the Decade of Gas is the greatest opportunity we have today.
“Their first cargo was in 1997, our fist cargo was in 1999. They were only two year ahead of us but if we match that time data with our capacity differential at 22-million tons versus 77-million tons, you see that we haven’t moved and that is why this Decade of Gas must be seen as an emergency to change the narrative, to change the game for Nigeria, to move Nigeria’s economy on the back of gas.
“I said in one other forum that Nigeria has ridden on the back of oil for more than 50 years but the opportunity has come for us to fly on the wings of gas. Beyond power we have said at many other fora that gas is food, as feed for fertilizer, gas is feed for petro-chemicals, gas is feed for transport, gas is food. We cannot ignore gas. We hope that this Decade of Gas should reposition Nigeria. Dubai did it with oil, as I mentioned Qatar did it with gas. We have both oil and gas, I personally think it is time for Nigeria, it is time for gas”.