(Ecofin Agency) - The Nigerian National Petroleum Corporation (NNPC) has revealed that the country’s current untapped gas potential stands at 600 trillion Cubic Feet.

According to the Group Executive Director/Chief Operating Officer, Gas and Power Companies, NNPC, Saidu Mohammed (photo), Nigeria has a huge economic potential and currently the 9th largest proven gas reserves in the world.

He said in spite of the huge gas potential in the country, the sector has been unable to contribute significantly to power generation as a result of pipeline vandalism.

Mohammed noted that due to the recent nonstop attacks on the country’s gas pipeline, gas supply dropped considerably from 1400Mmscf/d to below 700Mmscf/d.

He added that the government is committed towards the execution of a gas master plan aimed at repositioning the country as a regional gas supply center with presence in the domestic, regional and export market.

“To accomplish this, it aims to create a fully liberalized market within five years which is underpinned by a robust, scalable and fully connected gas infrastructure that supports the 3 markets concurrently and cost effective gas from any source can get to any market. Transformation of the domestic market into a vibrant and fully commercial gas market where the gas price stimulates investment in supply and the sustainability of the market to compliments the other regional and export LNG markets, enabling a balanced portfolio and attracting a more widespread participation by new players so as to stimulate competition and efficiency,” he told Guardian news.

Between 2016 and 2020, NNPC would make sure that all current power plants are connected to permanent gas pipeline, repair the damaged ELP A and restore gas supply to the west and ensure the execution of the Nigerian Petroleum Development Company (NPDC) and International Oil Companies (IOCs) short term projects.

He revealed that the corporation intends to conclude the ELP II and OB3 Gas Pipeline Projects, secure funds to realize the identified upstream gas development that will guarantee further 7Bcfpd gas supply to meet demands by 2020 as well as to complete the PSC gas terms to market the huge offshore gas resources.

Anita Fatunji