Home Oil & Gas FG loses N1.2tn to low gas export in 10 years — Report

FG loses N1.2tn to low gas export in 10 years — Report

Gas plant -Lagospost.ng
Advertisement

Nigeria has N1.2tn to low gas export in 10 years, according to the Statistical Review of World Energy published by the Energy Institute.

The report, which was published in collaboration with KPMG, said the country’s natural gas export pegged at 28 billion cubic metres as of 2012, dropped to 20 billion cubic metres in 2022, resulting in an export loss of 8 billion cubic metres within the period.

The loss comes at a time that the government declared the year 2020 and beyond as a Decade of Gas in a bid to ramp up local gas consumption and increase gas reserves through investment in exploration activities.

According to Hebrew Energy, the value of one billion cubic metres of natural gas is worth about $183m, with the 8 billion cubic metres the country has lost in the last decade amounting to about $1.46bn (N1.2bn, using 802/$ exchange rate)

The development comes on the heels of a report by The PUNCH, last week that gas production decreased last year despite an N250bn intervention fund provided by the Federal Government through the Central Bank of Nigeria.

A recent report published by The PUNCH put revenue lost to gas flaring at $16tn in 10 years.

The Senate Committee on Gas chaired by Agom Jarigbe, last week, commenced an investigation into a N130bn Compressed Natural Gas intervention fund involving 15 companies, including Dangote Oil Refinery, NIPCO Gas Ltd, NIPCO Plc, Hyde Energy Ltd, Lee Engineering and Construction Company, Pinnacle Oil and Gas FZE and Transit Gas Ltd. Others are Almalgamated Oil Company Nig Ltd, First Modular Gas Systems Ltd, NOVAGAS Ltd, Greenville Liquefied Natural Gas Company, AP LPG Limited, MOB Integrated Services Limited, Delta State Government, and Gas Nexus Ltd.

In a summon letter, the Senate said the invited companies were required to appear with their progress reports stating the location or projects and the current status of the projects.

Speaking, the President of the Independent Petroleum Marketers Association of Nigeria, Chinedu Okoronkwo, lamented the exclusion of his members from the loan.

He claimed that his members would have by now converted more than one million vehicles to CNG models if they were included in the loan.

“None of my members got a kobo from the money. If such funds had been given to the right people, by now, many stations would have commenced the CNG conversion centres and by now more than one million cars would have been converted,” he said.

As of August, the Nigeria Extractive Industries Transparency Initiative said Nigeria required $20bn annually to achieve the desired gas expansion plan to bridge the country’s gas infrastructure.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.