The Federal Government has been tasked to deploy new strategies required to unlock the potentials and maximize the use of natural gas for Nigeria’s development.
The Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited (DIL), Mr. Devakumar Edwin, who made the call, said there was the need to find ways to exploit and utilize Nigeria’s natural gas to impact positively on the nation’s economy.
Speaking at BussinessDay’s 2020 Virtual Conference, with the theme “Gas Market Development – the Opportunities, Drivers & Challenges,” Edwin, said: “The industry uses varieties of hydrocarbon feedstock from the refinery and natural gas.
“One of the problems facing the industry is the lack of reliable feedstock supplies. Nigeria has the potential to be a major petrochemical producer. With proven gas reserves, not much has been accomplished with respect to the effective exploitation and utilization of this resource as most of the nation’s natural gas production has been liquefied for export.
“In sub-Saharan Africa, we produce raw materials and export to other countries. Our products are refined or manufactured and exported back into the continent. Really, the raw materials are taken out and value-added and brought back to the continent.
“Nigeria has done well in respect to the reduction of gas flaring to almost 10 per cent and exporting natural gas to generate revenue.”
He said: “But, our focus at Dangote is how to add value to the natural gas. After all, this Liquefied Natural Gas (LNG) that is being imported by various countries is used as fixed stock. They use this natural gas to generate power, fuel, and as feedstock. The value-added products are thereby exported to Nigeria.
“If you look at petrochemicals, we import almost all our petrochemicals into the country. Fertilizer is also being imported into the country. So, if we focus on adding value to natural gas that we produce in the country and export the finished products, be it fertilizer, petrochemicals, our export revenue will be much larger.”
He added, “The pipeline project will make it readily available for commercial use; nullify the need for future gas import; lead to diversification of Nigeria’s economy; increase government revenue (and meet the demand for domestic petrochemical products); ensure an increase in FX from exports and the creation of thousands of direct and indirect jobs.
“The pipeline project will make gas readily available for commercial use; nullify the need for future gas import; lead to diversification of Nigeria’s economy; increase government revenue (and meet the demand for domestic petrochemical products); ensure an increase in FX from exports and the creation of thousands of direct and indirect jobs.”
