Burning of fossil fuel releases large amounts of carbon dioxide or greenhouse gas into the atmosphere and leads to brownouts. It has the same environmental effect as the explosion of a nuclear bomb.
Petroleum, the most known source of fossil fuel, is transformed into usable fuels, like petrol, diesel, kerosene, jet fuel and propane (otherwise known as hydrocarbon gas) to generate energy.
Scientists explain that greenhouse gases trap heat in the atmosphere to cause an increase in global warming by 1° centigrade. Experts say that if atmospheric warming is above 1.5° centigrade it could lead to thawing of the glaciers and further raise sea levels.
And that is why the world is witnessing so much flooding, tsunamis or very swift sea waves that attain great heights, causing great losses of lives and properties in nearly all parts of the world.
Also, it could lead to loss of biodiversity and extinction of fauna and fossil, cause food insecurity due to desertification and drought, impairment of human health and poverty of millions, like the unfortunate fishermen who can no longer engage in their trade in regions where petroleum is mined.
In addition, the price of crude oil in the world market is wobbly as it changes due to human foibles of war, rumours of war, disasters, technological innovations and the decibel of the shrieks of the greenpeace lobby.
The quest to decarbonize the global atmosphere, in spite of the politics of China and America, has led the world to a significant shift in investment toward what has been described as “clean” energy.
Some of the more popular sources of clean energy are: Wind power, which is derived from the propulsion of windmill blades; solar, or energy tapped from the sun; geothermal or energy sourced from the belly of the earth; and biomass or hydropower generated from flowing waters, like River Niger that powers Nigeria’s hydropower plant at Kainji Dam in Niger State.
“Reports indicate that within that period NLNG paid a total of $100 billion to Nigeria’s Federation Account, unlike its counterpart-shareholder, NNPC that is gulping money the way a sinking ship takes in water”
But the focus of this discourse is on the use of gas as energy for both domestic and industrial purposes in Nigeria. Everything points to Nigeria taking advantage of the mass of gas deposits found within its borders.
Indeed, everything is in favour of an increase in the use of gas as a source of energy in the world. Maybe the best way to view this is to see the potential in transforming more 1.46 billion automobiles in the world away from petrol- to gas-powered engines.
Nigeria’s Liquefied Natural Gas Company is increasingly looking like the game-changer that will help the Nigerian economy transition into the post- fossil fuel era of the (albeit still distant) future.
Some say that NLNG, with shareholders that include Nigeria National Petroleum Company Limited, owning 49 per cent, British and Dutch-owned Shell, Total of France and Eni of Italy, is reputed to be the most profitably run government-owned enterprise in Africa.
NLNG began commercial operations in Bonny Island in Rivers State in 1999 with a current value of $17.5 billion and has repaid both principal and interest elements of its shareholders’ $5.45 billion loan facility.
It has built six Trains or phases of its works in the last 23 years, in four units of 84,200 cubic meters of LNG storage tanks, another four units of 65,000 cubic meters of refrigerated storage tank and three units of 36,000 cubic meters of condensate storage tanks.
Train 7 is a work-in-progress expansion that commenced in 2021. After its completion, it will raise production from by a whopping 35 per cent– from 22 Million Tonnes Per Annum to 30 Million Tonnes Per Annum
NLNG, which succeeded in reducing gas flaring in Nigeria from 65 to 20 per cent, has paid $8 billion Company Tax to Federal Inland Revenue Service, $13 billion for feed gas input and $17 billion to the Federation Account in 20 years.
The company has also contributed N25 billion toward the development of the Niger Delta as a whole, and paid N60 billion to construct Bonny-Body Road. Also, NLNG signed a N3 billion annual grant with Bonny Kingdom. This will last for 25 years.
In addition, NLNG provides scholarships to students and builds medical facilities and infrastructure in Bonny Kingdom. It awards two annual awards, the $100,000 Nigeria Prize for Science, and the Nigeria Prize for Literature, also valued at $100,000.
An NLNG literature says, “NLNG prides itself on its contribution to the development of… the oil and gas industry (in Nigeria) since the construction of its base Trains 1 and 2.” Its activities certainly provide (operational and financial) stability in Nigeria’s oil and gas sector.
As of 2017, Nigeria was reported to have 187 trillion cubic feet (or Tcf) of gas reserves, making it the 9th in the world, and accounting for three per cent of gas reserves of 6,923 Tcf. Russia has the largest gas deposit in the world.
Nigeria’s confirmed gas deposit is 306.3 times of its annual industrial and domestic consumption needs of 664,628 Million cubic ft. In other words, Nigeria’s gas reserves would last for 306.3 years at the current consumption rate.
In 1980 Nigeria’s reserve of natural gas was a little lower than 50 Mmcf. As noted earlier, their gas reserve is way above 287 Tcf. And by 2015, Nigeria’s gas export was 31 per cent or 929,844 Mmcf per annum, with nil imports.
Reports indicate that within that period NLNG paid a total of $100 billion to Nigeria’s Federation Account, unlike its counterpart-shareholder, NNPC that is gulping money the way a sinking ship takes in water.
In addition to contributing to the Federation Account, NLNG fulfills its Corporate Social Responsibility obligations beyond the Bonny community where it is sited. There is no doubt that Nigeria has a bright future in the gas business.
Out of the 12,000 employees, 95 per cent are Nigerians. The Management staff is made up entirely of Nigerians, with Dr. Phillips Mshelbila as Managing Director. While NLNG sub-contractors employ another 18,000 workers, NLNG Train 7 is expected to add another 12,000 workers.
In 2013, a consortium of six Nigerian banks provided a $1 billion NLNG Local Vendors Finance Scheme that was later raised to $1.2 billion in 2017. This was designed to prevent the problem of acute cash, present in the Nigerian business sector, from affecting NLNG operations.
Some industry experts are concerned that Nigeria is not taking advantage of the Ukrainian-Russian War to export gas to (especially Germany in) Europe and cash in on the demand, especially during the last days of the cold winter and spring.
They argue that with the Ukrainian-Russian War still ongoing, Nigeria, with swiffer reaction time, should have taken advantage of the situation to also export more crude oil whose price per barrel has gone beyond $100.
If the vodka of Ukraine that is at war is trending while that of Russia is being poured out on the streets of America, because of the unwanted war that is increasingly pitching Russia against America-led Western metropolitan powers, Nigeria’s oil and gas should be cashing in.
There is no doubt that the more than 1200 kilometre Nord Stream 2 gas pipeline laid by Russia under the Baltic Sea to deliver 38 (some claim 70) per cent of the gas energy needs of Germany has been interrupted by the Ukrainian-Russian War. Over to the NLNG.
