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NNPC, JV Partners to Grow Domestic Gas Supply to 5bcf/d in Three Years

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  • NNPC, JV Partners to Grow Domestic Gas Supply to 5bcf/d in Three Years

The Nigerian National Petroleum Corporation (NNPC) has said that it would collaborate with its joint venture partners to increase the amount of gas available to Nigeria’s domestic economy in 2020 to about five billion standard cubic feet per day (5bscf/d).

The corporation said in a recent statement from its Group General Manager Public Affairs, Mr. Ndu Ughamadu, in Abuja that the development would help the federal government’s plan to have more gas sent to Nigeria’s industries to stimulate economic growth in the country.

It noted that NNPC and its partners have evolved a scheme to achieve this, adding supply will grow by 285per cent from 1.3bscf/d to 5bscf/d by 2020.

According to the statement, a meeting where this was agreed on was held in Abuja, and seven critical gas development projects were identified.

The stakeholders, NNPC said, included companies that could fast-track execution of the plan to meet the domestic gas supply growth projection.

It explained that these companies were involved in Assa North-Ohaji South Field Development (ANOH); Oil Mining Lease (OML) 24 and OML 18 joint development; as well as Shell Petroleum Development Company Joint Venture/Nigeria Agip Oil Company Joint Venture unitised gas fields.

Others are the Nigerian Petroleum Development Company’s (NPDC) OML 26, 30, 42 and Chevron Nigeria Limited’s OML 49 Makaraba cluster development; SPDC JV gas supply to Brass Fertilizer Company; OML 13 cluster development and cluster development of Okpokunou/Tuomo West (OML 35/62).

The statement quoted NNPC’s Group Managing Director, Dr. Maikanti Baru, to have said that the federal government has directed the corporation to aggressively pursue gas development to jump-start the nation’s economic growth.

Baru outlined the strategic focus for achieving the government’s mandate to include growing capacity to supply enough gas to generate 15 gigawatts (15,000 megawatts) of electricity to the power sector by 2020; stimulating gas-based industrialisation by positioning Nigeria as the African regional hub for gas-based industries such as fertiliser; petrochemicals; methanol and developing gas for export by selectively expanding export footprint in high value and strategic foreign markets.

He said appropriate funding for the seven critical gas projects would be a priority and a key success factor, adding that alternative funding through third party financing option would be adopted to facilitate their execution.

Baru equally urged the partners to work together to ensure that the critical gas projects were executed expeditiously for the benefit of the country, adding that the NNPC would be available to work with all stakeholders to ensure timely delivery of the projects.

The statement said the Managing Director of Shell Petroleum Development Company (SPDC), Mr. Osagie Okunbor, in his response, applauded Baru for his focus on optimal production and delivery of gas to power, industry and for export.

He reportedly assured that with proper alignment of the key parties, the projects would be delivered as scheduled.

The meeting, the NNPC added, was attended by SPDC; Nigerian Agip Oil Company (NAOC); NPDC; Chevron Nigeria Limited (CNL); Seplat Petroleum Development Company PLc; Newcross Exploration and Production Limited and Eroton Exploration and Production.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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