Ekpo’s One Year of Propelling Nigeria’s Gas Devt and Utilisation

In an eventful one year in office,  the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has pushed the development of the Nigerian gas sector beyond the expectation of industry stakeholders, writes Peter Uzoho.

Last Wednesday, Nigeria’s pioneer Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo clocked his one year of being in charge of the new ministry created by President Bola Ahmed Tinubu. Ekpo was sworn in by the President Tinubu  on 21st of August, 2023 as one of the members of the   federal cabinet.

Not surprisingly, however, his appointment initially generated mix feelings and reactions among the players in the Nigerian oil and gas industry because of his being an outsider in the sector. Many industry experts had doubted his capacity to make an impact in the gas sector through sound policy initiatives and management of stakeholders because of their fear of his presumed limited knowledge and experience in the hydrocarbon industry.
Indeed, such fears were justifiable considering the attention placed on gas as a critical resource to tackle Nigeria’s acute energy poverty, propel its industrialization, ultimately rescue the country from years of underdevelopment and secure a brighter future for the next generations.

 This is because at the heart of realising the foregoing ambitions were the task of restoring investor confidence and attracting the desperately needed investments into the gas sector, leading the completion of key ongoing projects, addressing some of the critical fiscal, regulatory, commercial, and environment concerns from the upstream to the midstream and downstream segments of the gas sector among other issues.
The federal government under the past and present administration had launched several initiatives aimed at pushing the gas sector to contribute more to the overall economy. These include: the Nigerian Gas Master Plan; the Energy Transition Plan/NetZero Plan; the National Gas Flare Commercialisation Programme (NGFCP); the Autogas/Compressed Natural Gas Programme and the Decade of Gas programme, among others.

No doubt, these are all important programmes that need a robust leadership and strong collaboration between the government and the industry stakeholders to actualize. Hence,  the initial skepticism about Ekpo’s capacity to deliver because of his limited professional experience in the sector.
However,  after one year of being on the saddle as Nigeria’s Minister of State in charge of gas resources, Ekpo has practically disproved such impressions by actions, and has surpassed the expectations of the players in the industry.  
His one year in office has been characterised by remarkable milestone achievements in propelling the development of the gas sector in the country through many programmes of the government. He has successfully won the heart of the industry players and stakeholders as can be seen in the level of cooperation and collaboration existing between him and them, and through the accolades he has been receiving.

Major Projects Delivered
Immediately  after his swearing in and assumption of office on 21st August, 2023, the minister, who had understood the enormity of the task given to him and the need for him to replicate his excellence in the academia in his new national assignment, swung into action. After getting the necessary briefings from the agencies and corporates under his ministry, Ekpo started visiting the sites of the ongoing gas development projects to ascertain their stages of completion and to see to their final completion and coming on stream.

His first port of call was the multi-billion-dollar Obrikom, Obiafo, Oben (OB3) gas pipeline and that of Ajaokuta-Kaduna-Kano (AKK) gas pipeline. The two critical infrastructure were designed to boost gas supply for use by Nigerians and industries located across the corridors traversed by the pipelines. Sadly, these projects were abandoned to fate and became almost moribund as contractors lacked the push to pursue them to deadlines.  
But on assumption of office, Ekpo toured the sites of these projects more than twice in a space of seven months, held meetings with relevant contractors and the management of the Nigerian National Petroleum Company Limited (NNPC), and obtained commitments for their completion.
From the 40 and 20 per cent progress work he met on ground, respectively, the minister has ensured that these two important projects advanced to 80 and 50 per cent respectively. Now, the OB3 project is to be completed within the fourth quarter (Q4) of 2024, while AKK would be completed before the end of first quarter (Q1) 2025.

Resolving Legacy Gas Purchase Agreements/Debts
On the market side of the gas sector, Ekpo has provided the requisite leadership in resolving issues relating to the execution of the Gas Sales Purchase Agreement (GSPA) for Brass Methanol Project to unlock $3 billion investments in the gas industry.
He has also resolved the lingering 13 years debt arrears between gas producers and power generation companies (Gencos) in the country through a structured repayment mechanism. This sole act has ensured continued investment in the gas upstream space to support delivery of natural gas to Gencos.

Driving Nigeria-Morocco Gas Project
Also, the minister, who inherited the Nigeria-Morocco gas pipeline project upon his assumption of office, has been driving bilateral discussions on the project. The $25 billion pipeline project was designed to traverse the Republic of Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, The Gambia, Senegal, Mauritania and terminate in Morocco, with a spur to Spain for onward sale of gas to Europe.

Completed Projects
Under the watch of the minister, a number of critical gas development projects have been completed and inaugurated. These are: the expanded Ashtavinayak Hydrocarbon Limited (AHL) Gas Processing Plant in Kwale, Delta; the Assa North-Ohaji (ANOH) Gas Processing Plant in Ohaji-Egbema, Imo State and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.
At the inauguration of the facilities, the president had stated that approximately million standard cubic feet (500MMscf) of gas in aggregate would be supplied to the domestic market from the two gas processing plants, which represents over 25 per cent incremental growth in gas supply.
Describing the projects as important facets of the Decade of Gas initiative, Ekpo had noted that the federal government’s intervention policy in the gas sector had seen domestic production increase by 800MMscf/day.

Also,  the minister inaugurated the 3.1million metric tonnes standard cubic feet per day (MMscfd) Compressed Natural Gas (CNG) plant undertaken by Tetracore Energy Group in Ogun State. He equally unveiled the 5.2MMSCFD CNG/autogas facility at Ilasamaja, Lagos State; and  Inaugurated the 300MMscf/d Kwale Gas Gathering Hub in Ndokwa West Local Government Area of Delta State.
Moreso, the minister performed the groundbreaking for NesGas 50,000 metric tonnes Liquefied Petroleum Gas (LPG) Terminal at Onne, Rivers State; the Optimera Energy’s natural gas facility in Lekki Free Trade Zone, Lagos; the 3.1MMscfd Liquefied Natural Gas (LNG) facilities by Tetracore Energy Group in Ogun State; and Windek Energy Limited 20,000 metric tonnes LPG depot in Atabrikang Aquaha, Ibeno LGA, Akwa Ibom State.

More Targets
However, with more government’s focus on promoting clean cooking in the country, Ekpo’s ministry is targeting to convert 250,000 houses annually to LPG.
He had flagged off the Decade of Gas Grassroots LPG Penetration Programme in Abuja to achieve the goal of having inexpensive, safe, and clean cooking energy source available to every household in Nigeria.
Ekpo had explained that the mission of the scheme was to change millions of Nigerians’ lives by converting 250,000 houses annually to LPG use by 2030.
He said the outreach was a proof of his reducing the suffering of Nigerians from using firewood, kerosene and charcoal as cooking fuel for homes, to a cleaner and safer energy source – gas.
In addition, in the last one year, the minister has also brought on stream over 12 CNG retail station in Abuja and Lagos with plans for further expansion to other states of the federation.

Stakeholders Hail Minister
In recognition of the achievements recorded by Ekpo within the one year, he had been in charge of the Nigerian gas sector, stakeholders in the industry have commended him for surpassing the expectations of the industry.
.According to a renowned gas expert, Dr  Owolabi Ajibade, Ekpo’s tenure has been marked by visionary leadership, strategic foresight, and demonstrably positive outcomes.

He said the minister’s achievements in fostering innovation, attracting investments, and prioritising sustainability have laid a strong foundation for the transformation of Nigeria’s gas industry and the establishment of a robust gas-based economy.
Ajibade stated: “Imagine a Nigeria where clean, efficient LPG fuels homes, businesses, and industries across the nation.
“Ekpo’s focus on domestication efforts is making this a reality, improving air quality and public health. Beyond homes, a revitalised gas sector will usher in an era of economic opportunity. The projects spearheaded by  Ekpo will create jobs, empower local businesses, and position Nigeria as a key player in the global energy market.

“As  Nigeria navigates the evolving global energy landscape, Ekpo’s leadership stands as a beacon of progress, ensuring that the nation leverages its vast human and natural resources for the benefit of all its citizens.
“By unlocking the potential of its gas reserves, Nigeria can look forward to a future powered by progress, prosperity, and a cleaner environment.”
Also, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has commended Ekpo for the courage and boldness in ordering the domestication of all LPG produced within the country.
National President of NALPGAM, Mr. Oladapo Olatunbosun, said the policy introduced by Ekpo has resulted in the reduction and stabilisation of the product’s price in the domestic market.

He recalled that during a stakeholders’ consultative forum in Abuja in February this year, the association had drawn the minister’s attention to the fact that some international oil companies (IOCs) operating in Nigeria had been exporting huge volumes of gas out of the country,
He added that if these volumes were to be available for the domestic market, there would be no need to import LPG at exorbitant rates as the product will be available and there will be price stability in the local market.
He thanked Ekpo for heeding to their plea, saying his intervention has seen the price of LPG that was sold for N20 million per 20 metric tonnes reduced to N15 million per 20 metric tonnes.
Olatunbosun further pointed out that at the retail end, the policy had also led to a corresponding decrease from N1,500  and  N1,600 per kilogramme to between N1,000 and  N1,200 per kg.

Key Action Points in Years Ahead
However, while the minister may be relishing his achievements in the gas sector in his first year in office, it is imperative that he remain focused and resilient and not rest on his oars as a lot still needs to be done to really unlock and harness the potential of the gas sector in Nigeria. First, he should work towards getting the awardees of the gas flare sites under the NGFCP to start developing their assets. Currently, a lot of the awardees are still parading their award certificates without making any practical attempt at moving to sites.
Secondly, the minister should see to possible resumption  of talks on the long-abandoned $30 billion Olokola and Brass Liquefied Natural Gas projects sited in Ogun and Bayelsa States, respectively, but were reportedly stalled due to political reasons, leading to the withdrawal of the IOCs that were partnering with the NNPC on the deal at time.

Thirdly, Ekpo should find out why the NLNG  has been unable to fulfill its maiden LNG supply to local market in 2022 and see how the bottleneck can be tackled.
Lastly, as he leads the Nigerian delegation to the Gas Technology Conference (Gastech) holding next month in Houston, the United States, Ekpo should, as he had done in other previous international gas fora, effectively market Nigeria’s gas sector by highlighting the huge opportunities for prospective foreign investors and participants at the occasion.