Unlocking Gas Potential to Increase Economic Growth
Adopting new strategies to unlock Nigeria’s natural gas potential and maximising it would improve economic productivity and deepen job creation, stated Mr. Devakumar Edwin, the Group Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Industries Limited.
Edwin, who spoke during a panel session at the BusinessDay’s Energy Series 2020 Virtual Conference, said adding value to the nation’s natural gas would strengthen the petrochemical industry and allow Nigeria to shift from exporting raw materials to value-added products supplier.
“In the same vein, it will boost the economy and solve the ‘hydra-headed’ problem of unemployment in Nigeria with its multiplier employment effect,” he added.
Edwin said, “The industry uses a varieties of hydrocarbon feedstock from refinery and natural gas. One of the problems facing the industry is lack of reliable feedstock supplies. Nigeria has the potential to be a major petrochemicals producer.
“With proven gas reserves, not much has been accomplished with respect to the effective exploitation and utilisation of this resource as most of the nation’s natural gas production has been liquefied for export.
The Dangote boss said Nigeria has done well by reducing gas flaring to almost 10 percent and exporting natural gas to generate revenue.
Edwin said, “But, our focus at Dangote is how to add value to the natural gas. After all, this Liquefied Natural Gas that is being imported by various countries is used as feedstock. 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. Fertiliser 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 fertiliser or petrochemicals, our export revenue will be much larger.”
