Gas for Power: The Future of Gas as an Energy Solution for Nigeria. by Engr. Saidu A. Mohammed. Nigerian National Petroleum Corporation (NNPC)

Transcription

1 Gas for Power: The Future of Gas as an Energy Solution for Nigeria by Engr. Saidu A. Mohammed Group Executive Director/COO, Gas and Power Nigerian National Petroleum Corporation (NNPC) at The Annual Powering Africa Conference October 14th, 2016

2 Outline Introduction Global Energy Landscape Nigeria Gas Master Plan and Gas Utilisation Profile Gas Supply Infrastructure 2016 Gas and Power Production Profile Future of Gas as Energy Solution for Nigeria Conclusion

3 Global Energy Map The Global natural gas utilization for electricity was 27% in 2013 and this is projected to rise to 31% by 2040 Projection 27% 13% 19% 39% 1% SOURCE: EIA 3

4 Global Natural Gas Reserves Top 10 gas-rich countries Proved gas reserves Trillion cubic feet Russian Federation 1,719 Iran 1,187 Qatar 894 Turkmenistan 619 Saudi Arabia 303 US United Arab Emirates Venezuela Nigeria holds the 9 th largest gas reserves in the world and the largest in Africa with about 188 Tcf. Nigeria 188 Algeria Generally taken to be those quantities that can be recovered in the future from known reservoirs under existing economic and operating conditions (predominantly conventional gas reserves) given the geological and engineering information SOURCE: Wikipedia and DPR

5 Levelised Cost of Energy Gas as a fuel for power represents the lowest cost of electricity generation globally amongst Conventional fossils fuels (Oil and Coal) 5

6 Nigeria Gas Master Plan Aspirations - 3 Point Strategic Focus STRATEGIC THEMES OF GAS MASTER PLAN GAS TO POWER GAS BASED INDUSTRIALISATION HIGH VALUE EXPORT By 2020 we would have positioned Nigeria firmly as the undisputed regional hub for gas-based industries such as fertilizer, petrochemicals and methanol. LNG Regional Pipelines Deliver Gas for at 10,000 MW generation capacity by 2020 to Afam VI, Calabar NIPP, Azura IPP etc. Deliver on President s Gas Revolution Agenda to: Create regional hub for gas-based industries fertilizer, petrochemical and methanol Transform gas sector to value adding sector Consolidate Nigeria s position and market share in high value export markets Regional gas pipelines consolidate national footprint and influence 7

7 Current Gas Utilisation in Nigeria CURRENT DAILY GAS PRODUCTION AND UTILISATION Gas Wells Production 8.0 bcf/d Domestic Consumption (16%) 1.3 bcf/d (power and industries) Gas Flaring (10%) 0.75 bcf/d Re-injection and Other Operational Usage (36%) 2.9 bcf/d Export LNG (38%) 3.05 bcf/d (NLNG) 6

8 Nigeria s Gas Pipeline Network NATIONAL PETROLEUM NIGERIAN CORPORATION Over 5,000km of gas pipelines to be laid e.g. Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project At least 3 gas processing facilities (about 1bcf/d capacity each) to be designed and built Aggressive Timeline Anticipated for delivery Numerous gas utilization projects to be developed concurrently LNG, fertilizer, Power etc. 8

9 There is enough gas to support steady generation of 5,000MW [January October 2016 Gas Supply and Power Generation] Gas Supply to Power increased significantly at the beginning of the year with a record peak power generation of 5079MW (80% thermal generation) on February 2nd Incessant attacks have significantly dropped domestic supply from 1400mmscfd in February 2016 to about 1000mmscfd. Average thermal power generation of about 2800MW YTD Transmission and distribution issues exist 10

10 10 Proposed Gas Development Projects to Bridge Gas Supply Shortfall by 2020 Nigerian map showing location of the targeted gas fields Target Gas Volumes mmscfd Kebbi Sokoto Zamfara Katsina Kaduna Kano Jigawa Bauchi Yobe Gombe Borno mmscfd mmscfd Oyo Ogun Lagos Niger Kwara Ekiti Osun Ondo Edo Plateau Fct Nassarawa Kogi Benue Enugu Anambra Ebonyi Taraba Adamawa mmscf 270mmscfd 400mmscfd 7 Delta Bayelsa Rivers Imo 2 Abia Akwa Ibom 6 Cross River mmscfd

11 ELPS2 Site Pictures Sand blasting of welded field joint Pipe Stringing HDD through hard rock formation 11

12 Welding Activities on a Section of OB3 12

13 NNPC is also embarking on major projects for power generation contributing about 2GW generation capacity by 2020 Current NNPC + JV Capacity 1130 MW NAOC JV Okpai IPP 480MW 1 SPDC JV Afam IPP 650MW 2 Planned Projects Portfolio includes Qua Iboe Power Project 540MW Abuja IPP 1350MW Kaduna Power Plant 900MW Onne IPP 100MW Ogidigben IPP 450MW Others

14 Conclusion Gas to Power will contribute over 70% of Nigeria energy mix well into the future The completion of the backbone infrastructure such as ELPS2, OB3, AKK will enable increased availability of gas nationwide For gas to continue playing a dominant role, a strong alignment of plans, investments and operations is needed across the entire value chain (gas development pipeline infrastructure generation transmission distribution) to deliver the benefits of thermal power. NNPC s strategic intent is to participate fully in the economic activities of the gas to power value chain 16