Nigeria's oil, gas infrastructure growth vital for Western region

The completion of backbone infrastructure in Nigeria's gas sector is set to revolutionize the distribution of 1 billion standard cubic feet of gas to the western part of Nigeria by 2017. This significant development was highlighted by Yemi Adetunji, Group General Manager of Strategy and Execution for Gas and Power at the NNPC, during an exclusive interview with CNBC Africa at the Powering Africa Nigeria Summit. Adetunji emphasized the remarkable progress in re-energizing Nigeria's gas sector, overcoming challenges such as pipeline issues and vandalism, which had hampered operations in previous years. The country has witnessed a substantial improvement in gas supply to the domestic sector, with projections indicating further growth by the end of the year. This increased supply is expected to enhance the capacity of major power plants, leading to improved power generation across the nation. The focus on diversifying Nigeria's energy mix has been a key priority for the NNPC, with a strong emphasis on gas-to-power initiatives. Adetunji highlighted crucial infrastructure projects like ELPS 2, slated for completion by Q1 2017, and the strategic OB3 project set to come online by Q4 2017, which will collectively inject an additional 3 billion standard cubic feet of gas into the western region. These infrastructure developments are poised to drive progress in gas-to-power, gas-to-industry, and the commercial gas sector. In terms of expected reforms in the gas sector, Adetunji shed light on the initiatives spearheaded by the Ministry of Petroleum Resources to create a conducive policy environment for gas utilization. The reforms aim to promote gas-flare commercialization, ensure competitive pricing, and attract investment across various gas-dependent industries, ultimately contributing to the country's overall development. Addressing the role of the private sector in the industry, Adetunji underscored the government's commitment to facilitating private sector-led investments in oil and gas, while focusing on enhancing social infrastructure. He highlighted the resolution of issues surrounding oil risks in the Niger Delta, offering a favorable investment climate for interested stakeholders. Despite progress in gas supply, challenges in Nigeria's power sector persist, particularly in transmission infrastructure and market liquidity. Adetunji emphasized the importance of addressing these issues to unlock the full potential of the sector and maximize power generation capacity. Reflecting on the Power Africa Conference, Adetunji commended it as a valuable platform for fostering partnerships between NNPC and potential investors, aiming to drive commercial infrastructure development and advance power generation in the country. Looking ahead, Adetunji expressed optimism for the forthcoming conference, envisioning a forum to showcase achievements in Nigeria's power sector and chart a path towards further advancements in the nation's energy landscape. With a proactive approach and collaborative efforts, Nigeria is poised to leverage its vast gas resources to drive sustainable development and meet the growing energy demands of its population.