Gas Minister to enlighten investors on Nigeria’s ‘decade of gas’ opportunities at AEW 2023
During the African Energy Week (AEW) 2023 conference and exhibition – taking place at the Cape Town International Convention Center from October 16-20, the country’s Minister of State for Gas Hon. Ekperikpe Ekpo will provide insight into the numerous investment opportunities emerging across Nigeria’s gas market.
Likely to represent a 600 trillion cubic feet (tcf) gas market, Nigeria’s investment opportunities in this field are unparalleled, offering foreign financiers and project developers the chance to make high returns while driving the sustainable growth of Nigeria’s energy industry. Under frameworks such as the Petroleum Industry Act (PIA) and the Decade of Gas initiative, Nigeria has established itself as a highly attractive investment opportunity.
From upstream exploration to downstream processing to distribution and power generation, Hon. Ekpo joins AEW 2023 with the aim of connecting foreign capital with Nigerian gas projects. Hon. Ekpo joins Nigeria’s Minister of State for Oil Sen. Heineken Lokpobiri at the event this October, and will lead sessions such as Invest in Nigeria Energies.
Nigeria’s strategic position in close proximity to high demand regional markets, largely untapped gas resources and recent regulatory reform agenda have further enhanced its attractiveness as an investment destination. Under the Decade of Gas initiative – an ambitious government program launched in 2021 that aims to advance gas development and utilisation by 2030 – the country is paving the way for a series of large-scale project developments. Additionally, in 2022, the government identified 20 critical gas projects under the PIA, all of which require foreign investment to get off the ground.
Nigeria already represents a major gas player in Africa. In the short term, the African Energy Chamber’s (AEC) Q2, 2023 Outlook, the State of African Energy, shows that the country, alongside Algeria and Egypt, is expected to drive the majority of natural gas supply in Africa (80 per cent). Output is largely driven by the Nigeria Liquefied Natural Gas (LNG) project, which has been operating for 20 years. The project is being expanded with the addition of a seventh train, poised to increase national output from 22 million to 30 million tons per annum by 2027. The project showcases the potential for billion-dollar gas endeavors in Nigeria. However, supply concerns further underscore the need to invest in gas-related exploration.
While Nigeria’s proven natural gas reserves are currently measured at 200 tcf, ongoing exploration efforts are bound to increase this figure to 600 tcf. Upstream projects currently underway include the Okpokunou/Tuomo West Cluster Development; Hi Field; HA field; the Gbaran Nodal Compression project and many more. These developments barely scratch the surface of Nigeria’s upstream gas prospects, however. Downstream, the Decade of Gas initiative places specific focus on gas-related infrastructure, and is poised to unlock new opportunities for regional energy security and sustainable growth. Kicking off with the 614km Ajaokuta-Kaduna-Kano gas pipeline – connecting southern gas fields with central Nigeria – the initiative calls for the development of LNG and Liquefied Petroleum Gas facilities, incentivising the commercialisation of gas flares, the development of gas-based industrial bases and investment into power generation projects. This, in turn, has opened up significant opportunities for foreign investors and project developers. AEW 2023 will connect potential players with the country’s gas opportunities.
“Stepping into the role as Minister of State for Gas in Nigeria, Hon. Ekpo is poised to play an instrumental part in accelerating the pace at which investment is made in the country. His commitment to engaging with regional and foreign players will yield tangible results for the country while his dedication to leveraging policy and public-private partnerships will usher in a new era of project developments in Nigeria’s gas market. Nigeria is well positioned to become the global gas hub of the future, and with the drive of leaders such as Hon. Ekpo, the country is on track to achieve this objective,” stated Executive Chairman of the AEC, NJ Ayuk.
During AEW 2023, Hon. Ekpo will engage in and lead various panel discussions and investor forums under efforts to attract new investment to the Nigerian gas market.
As the biggest gathering of energy stakeholders on the continent, AEW 2023 plays an integral part in connecting capital with African projects, and with Hon. Ekpo’s participation, Nigeria is set to witness a wave of industry-advancing deals signed.
