We Now Supply 40% of Gas in Nigeria, Says Chevron

Chineme Okafor in Abuja
Oil firm, Chevron Nigeria Limited (CNL) has said that it now supplies up to 40 per cent of the domestic gas used in Nigeria, and on the back of that, has reduced gas flaring at its operations in the Niger Delta by 90 per cent from 2008 to 2017.

The company explained in a statement to THISDAY in Abuja, that its status as one of the largest suppliers of gas for domestic in Nigeria, was recently confirmed by the Department of Petroleum Resources (DPR).

It explained the development of Nigeria’s vast gas resources had been one of the major policy thrusts of successive governments in the country, adding that while the country ranked ninth in world’s gas proven reserves, its National Gas Master Plan had been able to focus attention on reducing routine gas flaring, increase domestic gas supply and utilisation.

According to the company, as operator of the joint venture between it and the Nigerian National Petroleum Corporation (NNPC), it currently ranked high among some corporate bodies that play leading role in gas development in the country.

“In February 2018, at the Nigerian International Petroleum Summit (NIPS) in Abuja, Chevron received an award as the greatest contributor of domestic gas in Nigeria. At the summit, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, commended CNL’s efforts in supporting the federal government’s gas development objectives,” said the statement.

It equally quoted its Managing Director, Mr. Jeff Ewing, to have explained that CNL had contributed immensely to the Nigerian government’s gas master plan through the various gas projects it has embarked on and that the company was the highest contributor of high quality gas to the domestic market in Nigeria.

“According to the Department of Petroleum Resources (DPR), CNL supplies about 40 per cent of Nigeria’s domestic gas consumption and has been the highest supplier of high quality domestic gas in Nigeria since 2015,” the statement noted.
Further, it had Ewing, stating that through investments in gathering and processing of associated gas, routine flaring has been reduced by over 90 per cent from 2008 to 2017 in CNL’s operations.

Ewing explained thus, “Amidst the growing global trend in gas production and utilisation, the expectations for the gas sector in Nigeria remain high and provide opportunities for investment in the sector.”

He listed the opportunities to include, transitioning from an oil based economy to a more integrated oil and gas economy and end routine gas flaring; deliberate exploration for non-associated gas to support the Nigeria Gas Master Plan with a focus on high liquid yield non-associated gas resources to optimise the gas development project economics; the growth of new industries made possible from the abundant resources and competitively priced gas supply.

Ewing further explained that CNL’s gas story began with the implementation of different phases of the Escravos Gas Project (EGP), with four phases of development over the years.

He stated that the EGP gas gathering, and processing facilities placed CNL as one of the pioneers in creating a practical and economic solution for gas flaring in the Nigerian oil and gas industry.
“The gas gathering, and processing projects involved stripping liquids from rich gas and creating a new revenue stream for the nation from the sale of the liquids,” he stated.

According to him, the gas strategy adopted by CNL will end routine gas flaring and build a profitable gas business through a portfolio of domestic, regional and export supply projects that fulfil the Domestic Gas Supply Obligation (DSO) of its joint venture.
The strategy, he said would include ending routine gas flaring; boosting domestic supply; diversifying and commercialising gas resources through gas-based industries such as its Escravos Gas-to-Liquid (EGTL) plant.

“Chevron has a long commitment to Nigeria. The company has been making significant investments in the country for over 50 years and it expects to do so for many more years to come. With the right policies, the enormous potential of Nigeria’s oil and gas sector can yield even greater benefits,” added Ewing.