Nigerian Minister of State for Petroleum Resources to QNA: Qatar is global leader in LNG market, aiming to benefit from its expertise

Nigeria's Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has highlighted Qatar's prominent position in the global liquefied natural gas (LNG) market. He praised Qatar as one of the largest LNG exporters and a major player in the global energy market.

In an interview with Qatar News Agency (QNA) on the sidelines of the three-day 7th Gas Exporting Countries Forum (GECF) Summit in Algiers, Ekpo emphasized the potential for cooperation between Nigeria and Qatar, including potential agreements with QatarEnergy and the transfer of LNG technology.

"Qatar is a global leader in LNG production, and its expertise can greatly benefit Nigeria. Cooperation in technology transfer related to LNG processing, storage, and transportation would enhance Nigeria's capacity to develop and manage its own LNG projects."

The Nigerian minister added, "Collaborating with Qatar on infrastructure development for natural gas facilities, pipelines, and terminals would strengthen Nigeria's energy infrastructure. This includes constructing and maintaining LNG export terminals, storage facilities, transmissions and distribution pipelines networks."

"Participating in joint exploration and production ventures to develop gas fields and enhance gas reserves and Sharing expertise and technologies in gas exploration, extraction, and processing to optimize operations."

"Collaborating on petrochemical projects, leveraging Qatar's expertise in the sector to develop new facilities."

"Building strategic partnerships in the energy sector to align policies and regulations for mutual benefits and engaging in policy discussions to address energy security, sustainability, and market stability."

"Cooperation with Qatar in the energy sector offers significant opportunities for mutual benefit, technological advancement, and sustainable energy development. By leveraging Qatar's expertise and resources, Nigeria can enhance their energy security, accelerate their energy transition efforts, and foster greater collaboration in the global energy market," Ekpo explained.

Nigeria's Minister of State for Petroleum Resources said, "The GECF, as an intergovernmental organization of the world's leading gas producers, plays a crucial role in shaping the global gas markets and ensuring the stability and sustainability of gas supplies."

He explained, "To enhance its effectiveness in dealing with industry bets and challenges, the Forum might consider several strategic actions, such as: Strengthening Collaboration and Unity Among Member Countries, Advocacy and Influence on Global Energy Policies, Innovation and Technology Investment, Market Development and Diversification, Enhancing Transparency and Information Sharing, and Addressing Environmental and Sustainability Issues."

"By focusing on these areas, the GECF can enhance its role and effectiveness in navigating the complex global gas industry landscape, advocating for the strategic interests of its members while promoting natural gas as a vital component of the global energy future."

Nigeria's Minister of State for Petroleum Resources pointed out, "The future of the gas sector, amid ongoing transformations, is poised at a crossroads shaped by a complex interplay of technological innovations, policy shifts towards sustainability, and changing market dynamics. Several key trends and factors will significantly influence the direction and role of natural gas in the global energy mix.

On transformations could shape the future of gas, he pointed out that energy transition, increasing demand in emerging markets, technological innovations and efficiency improvements, competition with renewables, regulatory and policy changes, and geopolitical factors are the main factors.

He pointed out, "Natural gas is widely viewed as a transitional fuel in the shift from fossil fuels to renewable energy sources. Its lower carbon footprint compared to coal and oil positions it as a more environmentally friendly option for electricity generation heating and a feedstock for hydrogen production."

"While demand in mature markets may stabilize or decline due to a shift towards renewables, emerging markets, particularly in Asia and Africa, will likely see increased demand for natural gas. This is driven by urbanization, industrialization, and the need for reliable and affordable energy sources."

"Innovations in extraction and processing technologies, such as fracking and horizontal drilling, have dramatically increased efficiency and reduced natural gas production costs. Advances in carbon capture, utilization, and storage (CCUS) technologies could further enhance the sustainability of gas in the energy mix."

"The falling costs of renewable energy technologies, such as solar and wind, along with improvements in energy storage, are intensifying competition. The ability of the gas industry to remain competitive will likely depend on continued technological innovation and cost reduction."

"Policies aimed at reducing carbon emissions and commitments to achieving net-zero targets are shaping the regulatory landscape. The gas sector must navigate these changes by reducing emissions, enhancing efficiency, and potentially pivoting towards green hydrogen production."

"Geopolitical tensions and supply chain vulnerabilities can affect global gas markets and prices. Diversification of supply sources and routes and the development of liquefied natural gas (LNG) markets can mitigate some of these risks."

"There's growing interest in hydrogen as a clean energy carrier. Natural gas is a primary source for hydrogen production through steam methane reforming, albeit with carbon emissions. The development of 'blue hydrogen' where the CO2 emissions are captured and stored could serve as a bridge to the widespread adoption of 'green hydrogen', produced via electrolysis powered by renewable energy.

"In conclusion, the future of the gas sector is intertwined with the broader trends of global energy transition, technological advancements, environmental policies, and market dynamics. The industry's capacity to adapt, innovate, and integrate with emerging clean energy technologies will determine its longevity and role in a sustainable energy future."

Nigeria's Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said that the global gas industry is complex and faces a multitude of challenges, including environmental concerns,
market volatility, geopolitical issues, competition from renewables, infrastructure issues, and regulatory challenges.

He explained, "While cleaner than coal and oil, natural gas still emits CO2 when burned. There's also the issue of methane leaks during extraction and transportation. Prices for natural gas can be highly volatile, influenced by geopolitical tensions, changes in supply and demand, and other factors. Many gas-producing regions are in geopolitically sensitive areas, affecting supply stability. Natural gas faces increasing competition as renewable energy sources become cheaper and more efficient. The development and maintenance of infrastructure for gas extraction, processing, and transport require significant investment. Diverse and sometimes conflicting regulations across jurisdictions can complicate operations for gas producers and exporters."

Speaking to QNA, Nigeria's Minister of State for Petroleum Resources said, "The GECF Summit in Algeria is expected to discuss the potential solutions facing the industry, including promoting cleaner extraction techniques that can reduce methane leakage and CO2 emissions during the gas extraction and burning process. Developing more reliable and extensive infrastructure to ensure stable supply chains and access to new markets. Member countries should be encouraged to diversify their energy mix to include gas as a transition fuel alongside renewables.
Implementing mechanisms to reduce price volatility, such as strategic reserves and better predictive analytics for supply and demand. Enhancing cooperation between gas-exporting countries to more effectively navigate geopolitical challenges and regulations. Working towards harmonized international regulations simplifying cross-border gas transactions and investments."

"GECF provide a platform for member countries to collaborate on finding solutions to these challenges, promoting natural gas as a vital component of the global energy mix."

Nigeria's Minister of State for Petroleum Resources stated that given the evolving dynamics of the global energy landscape, the summit is expected to focus on several strategic actions to support and advance the gas industry, including encourage closer coordination among gas-exporting countries to stabilize the market and address price volatility, ensuring a more predictable environment for producers and consumers; Recommend investing in and adopting technologies that reduce the environmental impact of gas extraction and consumption, such as carbon capture, utilization, storage (CCUS) and methane leak reduction; Advocate for adopting best practices in environmental management and sustainability across the industry to enhance its global acceptance and competitiveness; Call for increased investment in research and development to explore new technologies that enhance efficiency, reduce costs, and improve the safety of gas operations; Encourage the adoption of digital technologies for better resource management, predictive maintenance, and operational efficiency; Promote the expansion of gas use in various sectors such as transportation (e.g., LNG for shipping), power generation, and as a feedstock for petrochemicals and hydrogen production, enhancing its market diversity; Support initiatives for developing LNG infrastructure and pipelines to facilitate entry into new markets and secure diversified supply routes.

He expected that the participants would "Recommend harmonizing international regulations and standards to ease the gas trading processes across borders. Encourage member countries to engage in strategic partnerships and dialogue with consuming nations, regional organizations, and international bodies to foster cooperation and understanding in the energy sector. Advocate for enhanced knowledge sharing and capacity building among member countries to leverage collective experiences and best practices. Position natural gas as a key player in the global energy transition, highlighting its role as a cleaner alternative to coal and oil and as a complementary resource for renewable energy systems. Develop strategies to mitigate geopolitical risks and ensure the security of supply chains, safeguarding against disruptions in global gas supply."

"By focusing on these areas, the GECF and its member countries can work towards a more sustainable, efficient, and resilient gas industry that is better equipped to navigate the challenges of the 21st century while supporting global energy security and climate goals," he explained.

Nigeria's Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said, "Geopolitical turmoil in strategically significant regions like the Red Sea has far-reaching implications for the world's energy industry. This area is critical due to its proximity to major oil-producing countries in the Middle East and North Africa (MENA) region, and it serves as a vital corridor for global energy trade, particularly through the Suez Canal and the Bab el-Mandeb Strait.

He added that the primary effects such turmoil can have on the global energy landscape include: disruption of supply channels; volatility in global energy prices; security costs and insurance premiums; shifting energy strategies; investment and project delays; regional and global diplomatic efforts; energy security and policy reforms; renewed focus on renewable energy.

Speaking to QNA, Ekpo said, "Geopolitical instability in the Red Sea region and its implications highlight the intricate link between global politics and the energy sector. As such, maintaining open and secure energy transit routes in these areas remains a top priority for energy-importing countries and international regulatory bodies."

Nigeria's Minister of State for Petroleum Resources pointed out, "Nigeria is committed to sustainable growth of natural gas exploitation and utilization, both for domestic use and export via LNG and pipeline gas to sub-regional African countries."

He stated, "Nigeria is embarking on different initiatives, projects, and policies to enhance the performance of the oil & gas sector," including, "The National Gas Expansion Program (NGEP) that provides framework and policy support to deepened gas supply and utilization in power generation, gas-based industries, and in emerging niche gas sectors such as gas in transportation LPG for cooking and remote virtual gas supply using trucks to convey LNG and CNG to industries."

"The declaration of 2021-2030 as Decade of Gas towards a gas-powered economy, that would not only lower Nigeria's GHG emissions but also reduce the Country's import bills."

"The OB3 pipeline, also known as the Obiafu-Obrikom-Oben gas pipeline, is a significant infrastructure project, designed to enhance the country's capacity to transport natural gas. Initiated to improve the availability of gas for power generation and industrial use, the pipeline is a key component of Nigeria's effort to harness its large natural gas reserves for domestic consumption and reduce flaring."

"Expanding our current LNG production capacity to about 30 million tons per annum (30 MTPA) at Bonny with the ongoing N-LNG Train 7 project. "

"The recent enactment of the Petroleum Industry Act (PIA) is an indication of our commitment to drive more value from natural gas by providing the required governance, regulatory and fiscal framework to support the growth of the industry.

"Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline an ambitious project aims to create a pipeline spanning over 600 kilometers, connecting Ajaokuta in Kogi State to Kano in the north through Kaduna. It's designed to facilitate the distribution of natural gas for domestic consumption, serving as a backbone for power generation and industrial growth across the regions it traverses.

"Bonga South West Aparo (BSWA) Deepwater Project, located in the Gulf of Guinea, the BSWA oil field is intended to start production with a floating production, storage, and offloading (FPSO) unit. Managed by Shell and its partners, the project aims to tap into the deep-water oil reserves, contributing significantly to Nigeria's oil production capacity."

"Rehabilitation of Refineries, the country has also placed a focus on rehabilitating its existing refineries, including those in Port Harcourt, Kaduna, and Warri. The goal is to reduce Nigeria's dependence on imported refined products, enhance domestic refining capacity, and ensure energy security."

"Olokola and Brass LNG Projects, Although they have faced delays, these projects aim to develop LNG facilities analogous to the existing NLNG operation. If revived and brought to completion, they would significantly increase Nigeria's capacity for LNG production and export."

"Nigeria is encouraging investment in deep offshore oil and gas exploration and production. The country has vast untapped reserves in these areas, which require advanced technology and substantial investment to develop."

"Gas Flare Commercialization Programme. This initiative seeks to eliminate gas flaring through the commercial use of flared gas. It encourages investment in capture and conversion technologies to turn waste gas into valuable resources, reducing environmental impact and creating economic value."

Concluding his remarks to QNA, Nigeria's Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said, "These projects are part of Nigeria's broader strategy to enhance its energy sector's performance, address infrastructure deficit, reduce environmental impact, and ensure long-term sustainable development. The success of these initiatives is critical for Nigeria to strengthen its position among the major oil and gas producers globally." (QNA)