Oil and Gas: What lessons for Nigeria from Russia?

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By Emmanuella Anokam, News Agency of Nigeria (NAN)

With over 200 trillion cubic feet (tcf) Nigeria has the largest gas reserves in Africa. It is ranked 9th globally.

Given our high dependence on oil and gas for industrial and domestic energy the global transition from carbon fuel to sustainable energy sources poses a significant threat to Nigeria’s economy.

Most African countries, including Nigeria, are still facing energy availability problems as their energy consumption is several times below the world’s average.

Experts estimate that Africa will account for over 60 per cent of global population growth by 2050.

In view of urbanisation experts forecast that Africa will experience significant economic growth to be accompanied by two-fold increase in natural gas demand.

Nigeria, Africa’s largest Liquefied Natural Gas (LNG) exporter lacks access to energy and since gas is the energy transition fuel, it is only logical that its development, availability and utilisation be enhanced.

Natural gas offers effective solutions to major areas of activities causing air pollution, including power generation, transport and household applications.

It can replace coal in power generation and oil products in transport; as for household applications, natural gas substitute Biomass (firewood) which according to experts account for up to 45 per cent of Africa’s energy mix

Apart from being used for cooking, transportation (in vehicles), heating and powering machines, industries among others, the gas is also a valuable raw material for the production of fertilisers.

A trip to Russia by the News Agency of Nigeria (NAN) on the invitation of its state-owned, Gazprom Energy Company revealed that partnering and emulating Russian Gas Projects and Gazprom’s competencies along the entire value chain of gas business is paramount for Nigeria’s gas development.

Russia has the largest proven natural gas reserves in the world, worth 47.8 trillion standard cubic meters. Iran and Qatar follow, with more than 30 and 20 trillion cubic meters.

Gazprom, its state-owned energy corporation, established in 1971 with sales of over 120 billion dollars is ranked as the largest natural gas company in the world and the largest company in Russia by revenue.

NAN discovered that the company operates many active oil, gas and condensate fields with cluster of producing gas wells, comprehensive gas treatment unit, booster compressor station, and transportation and power infrastructure.

Gazprom is the main supplier of natural gas to the country and to other countries. Under its Gas Infrastructure Expansion and Unified Gas Supply System, gas is supplied to millions of households and public utility enterprises.

The Russian government is also committed to its All-Russia Gasification Programme which started in 1960 and had promoted clean energy and energy security till date, according to Mr Buzin Vyacheslav, Diretor-General, JSC, Gazprom Distribution.

Vyacheslav said the total length of Gazprom’s Gas Distribution Networks transmitting gas to end consumers was more than 800,000 kilometres.

“To make clean energy widely available to Russians, Gazprom is actively bringing gas to cities and villages, by building gas pipelines stretching from major gas trunk lines to the land plots of consumers.

“Gas infrastructure expansion is the most ambitious socially significant project of Gazprom that helps improve the living standards of people and the main benefits of pipeline natural gas are convenience of use, eco-friendliness –reliability and cost efficiency.

“Uninterrupted delivery and safety are the main principles of Gazprom as regards gas supplies, both construction and operation of gas infrastructure facilities are performed in compliance with stringent requirements.

“Pipeline natural gas is the cheapest energy source available in Russia today. For instance, gas prices for the population are regulated by the government which makes them as affordable for households as possible“, he told NAN.

According to Vyacheslav, gas infrastructure expansion is a powerful driving force behind the development of regional economies.

“Owing to the access to pipeline gas, availability, larger tax payments; growth of employment and increase of living standards and better environmental conditions are achieved,’’ Vyacheslav told NAN.

He also said gas infrastructure is being expanded extensively across Russia, adding that by 2030, gas networks will be present in all places of Russia where it is technically possible.

Vyacheslav said for Nigeria to achieve gasification, technical and technological designs are involved to ascertain the cost.

He said it would also involve geological survey to identify rocky areas which might not be penetrated hence other options could be applied.

The energy company had expressed readiness to partner African countries, including Nigeria on gas technology, infrastructure and development, according to Dobycha Nadym, Mr Dimitry Stratov, its Deputy-Director General, Prospective and Development.

Prof. Stanley Onwukwe, an Oil and Gas Expert, said it was unfortunate that Nigeria had the resources and projects like the National Gas Development Strategy, Trans Sahara Gas Pipeline Project among others which were yet to be fully harnessed.

Onwukwe said Russia was proactive and had supplies gas to almost all the western world.

Onwukwe, a professor in the department of  petroleum engineering, Federal University of Technology Owerri, said there were blueprints established for gas developmental projects to thrive in the country but lack of political will hampered such projects.

“Nigeria has Compressed Natural Gas (CNG) already being used in Benin, most cars in the state are running on CNG.

“Initially the conversion of vehicles was free but they later started collecting almost a million naira which put people off.

“Such should be replicated nationwide while CNG refill stations should be established in various places for refilling but no such thing.

“The problem is not to have your vehicle’s engine converted for natural gas use but to see where to refill if you are on transit.

“It is a global village; just that the government does not have will power to implement such developmental projects after contract award,’’ he said.

He said the facility including gas base infrastructure for industries were necessary for distribution of gas but required proper investment and finance.

Dr Chijioke Ekechukwu, an economist said it would take a strong political will and implementable policies for Nigeria to attain such feat as Russia including having all our vehicles converted to CNG.

According to Ekechukwu, piping gas to homes is also possible if the supply is guaranteed.

He said it would be win-win to have policies in place towards achieving this, especially the fact that we have an abundance of gas.

“Only recently, the Nigerian government inaugurated a committee to convert cars and buses from petrol and diesel to CNG engine that can be used by these vehicles.

“We have an abundance of this gas, which is flared and wasted. Gas consumption both at home and by vehicles is climate friendly and should be encouraged,’’ said.

Also speaking, Mr Yusha’u Aliyu said Russia and EU have an excellent working policy on energy production and consumption, saying that technological advances also added value to their efforts.

“Gas is cost effective and environmental friendly. We have to develop a strategy and culture of commitment and efficiency to thrive,’’ he said. (NANFeatures)