Aloma, An Oil And Gas Company, Has Successfully Contributed To The Development And Utilization Of Nigeria’S Gas Resources For One Year. Their Efforts Have Been Instrumental In Promoting The Growth And Effective Utilization Of The Country’S Gas Industry.

In a momentous one-year term, Rt. Hon. Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), has exceeded the expectations of industry stakeholders and propelled the development of the Nigerian gas sector, as outlined by Peter Uzoho.

Last Wednesday marked the one-year anniversary of Ekperikpe Ekpo’s appointment as Nigeria’s pioneer Minister of State for Petroleum Resources (Gas). Sworn in on August 21, 2023, by President Bola Ahmed Tinubu, Ekpo’s appointment initially elicited a mixed response from players within the Nigerian oil and gas industry due to his status as an outsider in the sector. Many doubted his ability to make significant contributions to the gas sector through sound policy initiatives and effective stakeholder management.

Considering the critical role of gas in addressing Nigeria’s energy poverty, driving industrialization, and securing a brighter future for future generations, these concerns were justified. The success of achieving these goals relied on restoring investor confidence, attracting much-needed investments into the gas sector, completing key ongoing projects, and addressing fiscal, regulatory, commercial, and environmental concerns in various segments of the gas sector.

The federal government, under both past and present administrations, launched several initiatives to advance the gas sector’s contribution to the economy. These include the Nigerian Gas Master Plan, Energy Transition Plan/NetZero Plan, National Gas Flare Commercialisation Programme (NGFCP), Autogas/Compressed Natural Gas Programme, and the Decade of Gas program, among others.

Despite initial doubts about his capabilities, Ekperikpe Ekpo has spent one year as Nigeria’s Minister of State for gas resources, disproving skepticism through his actions. He has surpassed industry expectations by achieving remarkable milestones in developing the country’s gas sector through various government programs. The level of cooperation and collaboration between the minister and industry players demonstrates the trust and support he has successfully garnered.

Successful Project Deliveries
Immediately after assuming office, Ekpo took swift action to address ongoing gas development projects. He visited the sites of the multi-billion-dollar Obrikom, Obiafo, Oben (OB3) gas pipeline and the Ajaokuta-Kaduna-Kano (AKK) gas pipeline, which had been abandoned and almost moribund. Through meetings with contractors and the Nigerian National Petroleum Company Limited (NNPC), Ekpo ensured these critical projects progressed significantly in a short span of time. The OB3 project is expected to be completed in Q4 of 2024, while AKK is scheduled for completion before Q1 of 2025.

Resolving Legacy Gas Purchase Agreements/Debts
In terms of market development, Ekpo displayed effective leadership by resolving issues related to the execution of the Gas Sales Purchase Agreement (GSPA) for the Brass Methanol Project. His efforts unlocked $3 billion in investments for the gas industry. Additionally, he resolved the 13-year debt arrears between gas producers and power generation companies (Gencos), guaranteeing continued investment in the gas upstream sector to support natural gas supply to Gencos.

Driving Nigeria-Morocco Gas Project
Since assuming office, Ekpo has driven bilateral discussions on the Nigeria-Morocco gas pipeline project. This $25 billion project aims to traverse several countries, terminating in Morocco with a spur to Spain for gas sales to Europe.

Completed Projects
Under Ekpo’s leadership, numerous critical gas development projects have been completed and inaugurated. These include the expanded Ashtavinayak Hydrocarbon Limited (AHL) Gas Processing Plant in Kwale, Delta State; 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. These projects have significantly increased domestic gas supply, contributing to the objectives of the Decade of Gas initiative.

Ekpo also inaugurated the 3.1 million metric tonnes per day (MMscfd) Compressed Natural Gas (CNG) plant in Ogun State, the 5.2 MMscfd CNG/autogas facility at Ilasamaja, Lagos State, and the 300 MMscf/d Kwale Gas Gathering Hub in Delta State. The minister further performed groundbreaking ceremonies for various gas projects, including the NesGas 50,000 metric tonnes Liquefied Petroleum Gas (LPG) Terminal at Onne, Rivers State; Optimera Energy’s natural gas facility in Lekki Free Trade Zone, Lagos; and the 3.1 MMscfd Liquefied Natural Gas (LNG) facilities by Tetracore Energy Group in Ogun State, among others.

More Targets Ahead
To further promote clean cooking, Ekpo aims to convert 250,000 houses annually to LPG usage. He kicked off the Decade of Gas Grassroots LPG Penetration Programme, with the goal of providing inexpensive, safe, and clean cooking energy to every household in Nigeria by 2030. By replacing firewood, charcoal, and kerosene with LPG, Ekpo aims to improve the quality of life for millions of Nigerians. The minister has also initiated the establishment of CNG retail stations in Abuja and Lagos, with plans for further expansion.

Stakeholders Commend the Minister
In recognition of Ekperikpe Ekpo’s achievements in his first year as Minister of State for gas resources, stakeholders in the industry have applauded his performance. Dr Owolabi Ajibade, a renowned gas expert, commended Ekpo’s visionary leadership and strategic foresight, which have laid a strong foundation for transforming Nigeria’s gas industry and establishing a robust gas-based economy. Ajibade emphasized the positive impact of Ekpo’s focus on domestication efforts, clean energy adoption, and economic opportunities generated by the minister’s projects.

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) also praised Ekpo for his courage and boldness in domesticating LPG production within Nigeria. This policy has reduced and stabilized LPG prices in the domestic market, benefiting both businesses and consumers.

Key Action Points Ahead
While celebrating his achievements, it is crucial for Ekperikpe Ekpo to remain focused and resilient. Several key tasks lie ahead to unlock and harness the full potential of Nigeria’s gas sector. First, he should ensure that the awardees of gas flare sites under the NGFCP begin developing their assets instead of solely holding certificates. Secondly, resumption of talks regarding the long-abandoned $30 billion Olokola and Brass Liquefied Natural Gas projects should be pursued. Thirdly, Ekpo needs to address the obstacles preventing the NLNG from fulfilling its maiden LNG supply to the local market. Finally, Ekpo should effectively showcase Nigeria’s gas sector’s vast potential at international conferences, such as the upcoming Gas Technology Conference (Gastech) in Houston, to attract foreign investments.