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    Nigerian Gas Overview

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    Kagiso Kaya
    The document discusses gas market development in Nigeria and transition countries. It summarizes that Nigeria has significant natural gas reserves and is committed to exporting gas through pipelines and LNG. While Nigeria's pipeline infrastructure is currently non-existent, two major pipeline projects and LNG projects show promise to develop Nigeria's gas export options through both pipelines and LNG. The document argues that pipelines and LNG can be complementary rather than competitive, as technology is making both more economical and flexible options to bring stranded gas to markets.

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    Nigerian Gas Overview

    Uploaded by

    Kagiso Kaya
    97 views15 pages
    The document discusses gas market development in Nigeria and transition countries. It summarizes that Nigeria has significant natural gas reserves and is committed to exporting gas through pipelines and LNG. While Nigeria's pipeline infrastructure is currently non-existent, two major pipeline projects and LNG projects show promise to develop Nigeria's gas export options through both pipelines and LNG. The document argues that pipelines and LNG can be complementary rather than competitive, as technology is making both more economical and flexible options to bring stranded gas to markets.

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    Nigerian Gas overview

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    The document discusses gas market development in Nigeria and transition countries. It summarizes that Nigeria has significant natural gas reserves and is committed to exporting gas through pipelines and LNG. While Nigeria's pipeline infrastructure is currently non-existent, two major pipeline projects and LNG projects show promise to develop Nigeria's gas export options through both pipelines and LNG. The document argues that pipelines and LNG can be complementary rather than competitive, as technology is making both more economical and flexible options to bring stranded gas to markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    97 views15 pages

    Nigerian Gas Overview

    Uploaded by

    Kagiso Kaya
    The document discusses gas market development in Nigeria and transition countries. It summarizes that Nigeria has significant natural gas reserves and is committed to exporting gas through pipelines and LNG. While Nigeria's pipeline infrastructure is currently non-existent, two major pipeline projects and LNG projects show promise to develop Nigeria's gas export options through both pipelines and LNG. The document argues that pipelines and LNG can be complementary rather than competitive, as technology is making both more economical and flexible options to bring stranded gas to markets.

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    Download as PDF, TXT or read online from Scribd
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    of 15

    INTERNATIONAL GAS UNION

    WOC 10

    GAS MARKET DEVELOPMENT IN


    TRANSITION COUNTRIES
    Nigeria’s Pipelines Vs LNG
    Competition or Cooperation

    Mourad Belguedj
    The World Bank
    TOKYO
    June 6, 2003
    1
    General Principles

    • Do pipelines compete with LNG or are they


    complementary to LNG
    • LNG extends pipeline’s reach, delivering gas
    where they still cannot
    • Developing countries are committed to export gas
    by pipelines and LNG
    • Nigeria is a unique SSA LNG and gas exporter to
    remote markets and soon to neighboring countries
    • This is the case we intend to study here
    2
    Policy Framework

    • Nigeria’s target of eliminating gas flaring by 2008


    has attracted a broad range of private investment
    proposals in LNG and Natural Gas pipelines
    • National, regional, and international markets have
    shown interest in Nigeria’s gas export options
    • For instance, gas and LNG have been competing
    for the Ghana power and industrial market

    3
    Nigeria Gas Option

    • Nigeria’s gas is yet to develop in a way commensurate


    with its resource base
    • Concerns over damage to health and environment as Niger
    delta oil production could increase flaring
    • Nigeria’s Gas pipeline infrastructure is non-existent,
    domestic and regional gas markets are undeveloped
    • Power trade is growing exponentially in Gulf of Guinea:
    CI and Nigeria to Chad, Niger, Ghana, Benin
    • Lack of financial resources and enabling environment
    have hindered gas exports
    • New Vision & Gas Strategy will forward development
    4
    Gas Is Nigeria’s Fastest Growing
    Primary Energy Source

    • Gas is Nigeria’s fastest growing energy source over the


    next 30 years. Reserves stand at 150 Tcf and could last 108
    years at current production rates
    • Gas demand is expected to more than double its
    consumption level to 42 BCM by the year 2020 with
    export capacity reaching 60-70BCM/y in 2010 for LNG
    • Two green field pipeline projects ( WAGP, NAGP) will
    lead development with NLNG and new LNG projects
    • Most of Nigeria’s growth is expected to occur in exports
    directed to advanced and emerging regional markets

    5
    Onshore and Offshore LNG

    • Although there are no precedents, floating LNG near


    offshore gas fields could materialize during the present
    decade, based on FPSO’s recent success in oil and gas fiels
    ( N’kossa, Girassol, in West Africa)
    • Nigeria is expanding the existing 5 trains of NLNG from
    Bony to 16.7 Mt/y in 2007
    • Greenfield proposals which include 9Mt/y Chevron-
    Texaco West Niger delta at Escravos, Statoil, ExxonMobil
    5/6 Mty
    • both floating LNG will add to 25Mt/y expected to develop
    over the next 10–15 years
    6
    Combination of Pipelines and LNG

    • Technology advances in gas transport improve gas


    economics as new deep-sea pipeline technology is
    also bringing to markets stranded gas.
    • Progress in power market reforms are expanding
    in greenfield power projects.
    • Diversification of supply for buyers and of
    markets for exporters, mean increased security for
    buyers and sellers alike.
    • The traditional divide of LNG Vs Gas Pipelines is
    shifting towards complementarity.
    7
    Gas to Power
    An Attractive Option

    • Technology & efficiency of gas turbine favor gas as Capex,


    Apext, & modularity make suitable to even the smallest
    markets
    • Peak shaving & base load LNG are viable everywhere
    • CO2 emissions for gas are 80% lower than from coal,
    making gas more health friendly, especially if this gas
    originates from associated gas otherwise flared
    • Gas helps LDCs develop industrial parks near gas fields,
    extracting LPG, LNG projects, GTL, GTW Petrochemical
    and Fertilizer Industries

    8
    Complementarity

    • Decreasing cost, higher efficiency of new LNG plants and


    Gas Carriers make LNG economical & affordable by the
    smallest markets
    • Trading Gas or LNG is another commodity exchanged
    "over-the-counter" by energy service providers
    • Forward trading in BTUs/electrons, is making swap deals
    part and parcel of market flexibility
    • The gas chain is now more flexible & complementary
    • Gas-to-power convergence, technological advances in
    higher efficiency turbines and CC technology is the option
    for the future.
    9
    GAS, LNG, and Power

    • The Power sector can play a leading role in securing


    financing and getting projects off-the-ground, paving the
    way for further economic development and access to
    global products, including to Information Technology.
    • An appropriate, clear Institutional and Regulatory
    framework is the first step to attract FDI and ensure lasting
    development
    • Gas using technologies will ensure access to modern fuels
    for the poor and would monetize stranded, undeveloped
    gas or associated flared gas benefiting the environment
    • Collaboration between Governments, Industry, and
    Financial Institutions would ensure its success
    10
    Options for Nigeria

    • Nigeria, a developing but now a well established


    LNG producing and exporting country, will also
    become a major regional and international pipeline
    gas exporter,
    • Cooperation rather than competition, will be the
    trademark of international gas business in the
    years to come and that both LNG and piped gas,
    will be part of the energy mix of importing
    countries and of exporter's options alike.
    11
    International Pipeline Opportunities:
    WAGP.NAGP

    12
    Location of the Proposed
    Major Export Projects

    13
    Nigeria to Algeria Pipeline in
    Relation to other European Supply

    14
    Locations of the Proposed Major
    Pipeline Projects

    15

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