Rt. Hon. Ekperikpe Ekpo KSJ is the pioneer Minister of State for Petroleum, in charge of Gas Resources in Nigeria. The former federal lawmaker is a consummate politician and a devout catholic. He was one of the forces behind the formidable Akwa Ibom Democratic Forum (ADF), a socio-political group that took the lead in canvassing the Renewed Hope Agenda of President Bola Ahmed Tinubu during the 2023 general elections. In this interview with ISAAC JOB our Correspondent in Uyo, the minister vowed to end gas flaring in Nigeria before 2030.
Excerpts;
The administration of President Bola Ahmed Tinubu in which you are a critical part as a cabinet minister is a year old. How do you rate the performance of the Renewed Hope Agenda of the government?
I think I can say that the Renereliespe Agenda is on course, very much on course. “From Gas to Prosperity, Renewed Hope,” is rock solid. This is a well-thought document that relies on data, empirical analysis and economic realities in formulating every piece of policy that you find in there. Every content of his 8 point agenda was subjected to scrutiny by experts, before it became a public document. That is why President Tinubu assumed office, knowing exactly what issues he was dealing with, without being told. In his first days in office, you can recall he kept asking Nigerians to be patient and make sacrifices in exchange for future investments. He knew ahead of time, the cause and effect of every decision he was going to make.For instance, you can see that after what looked like a free fall for the Naira, after he abolished the dual exchange rate, the Naira is now gradually gaining against the dollar, just as it was projected by his economic advisers. President Tinubu knows where he is going. And he has the right team in place. In our local parlance, Asiwaju, na man wey sabi road. The government upon inauguration removed subsidy which was roundly condemned by many Nigerians.
As a major stakeholder in the oil and gas sector, how far has the removal of subsidy solved perennial problems in the energy sector?
Petrol subsidy removal was long overdue. It was becoming obvious by the day, that it was some luxury we could not afford. Industry players were discussing it. Financial experts encouraged it. Even previous governments attempted it. At some point, the conversation was not about if, it was about when and how. Nigerians were only waiting for who will bell the cat. And President Tinubu came with the political will. Does it not irk your mind or stir up questions, when you consider the fact that, it was when we paid petrol subsidy that we had fuel queues the most. Fuel scarcity and queues became a perennial problem in Nigeria. It means something was not right. And if I recall rightly, I think there were reports in the media that people in Cameroon protested after the petrol subsidy removal happened in Nigeria. I am of the firm belief, that petrol subsidy removal was a pull away from the recipice, just in time, by President Bola Ahmed Tinubu. One of the billion-dollar bold and audacious moves is the unlocking of the largest gas reserves on the African continent and opening up Nigeria for multiple billion-dollar gas investments. Nigeria is in for a record Ftransitionme never seen before. Thanks to the foresight of Mr. President.
Do you think that we have enough natural gas as we make this bold move to transit to clean energy?
More than enough. If we are talking about proven gas reserves alone, that is about two hundred and nine trillion cubic feet (209tcf) of natural gas. We have geologists and experts, who are of the persuasion that there are a lot more gas to be found in Nigeria, if we’re deliberate about gas production. Nigeria is believed to hold up a potential of about six hundred trillion cubic feet (600tcf) of natural gas.It is often said, that Nigeria has more gas than oil. And this is gradually becoming our reality. We have abundant natural gas in the Chad Basin, Benue Trough, Dahomey, Niger Delta, Bida Basin, Anambra Basin and many others. In my own estimation, Nigeria is a gas province. So I think transiting to a gas-driven economy is the best decision we have taken as a nation.If well harnessed, which is what I am doing as the pioneer Minister of Gas in Nigeria, laying the right frameworks and foundation for the future, then natural gas can bring in more revenue than any other sector. Accelerate job creation, save the environment and boost our public health system.
Give us an overview of what the frequently mentioned OB3 gas pipeline project is all about?.
That’s true. We talk about OB3 and AKK more often. This is because a lot depends on these two transmission line projects. They make up a critical part of our gas infrastructure network, especially as it relates to gas supply around the country. OB3 is simply Obiafu – Obrikom – Oben gas project. The project runs from the Obiafu-Obrikom gas plant near Omoku in Rivers State to the Oben node in Edo State. It traverses 127 kilometers of land and is the largest gas transmission lines in Africa as of today. It is expected to move about two billion cubic feet (2bcf) of gas daily into the Ajaokuta – Kaduna – Kano gas pipeline network, also known as AKK, for subsequent distribution. It is a lifeline in gas supply in Nigeria.
Are there any challenges with the Nigeria – Morocco transnational gas pipeline project. Is it really feasible?
We‘re taking gas to Europe ultimately and would be selling gas at the very heart of industrialisation, where the big market is. Yes, the Nigeria – Morocco transnational gas pipeline project is an ambitious one and of international dimension. We’re going to move gas through the Republic of Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, The Gambia, Senegal, Mauritania, Morocco and then with a spur to Spain. Without being told, it’s going to be peculiar in a lot of ways, but talking about challenges, there is none that we cannot handle. It is an ongoing project. Work in progress. And I can say, so far, so good. Everything is going according to plan. It is feasible.
You supervised the end of gas flaring on all TotalEnergies platforms recently. When would other major EPs follow suit and the 2030 deadline still sacrosanct?
No. No. No. No. No. There’s no going back on ending gas flaring in Nigeria. President Tinubu had signed the 20% unconditional and 47% conditional greenhouse gas emissions reduction as contained in the Nationally Determined Contribution under the Paris Accord. The NNPCL has equally put in place programmes and initiatives to ensure zero routine flare in all its joint venture assets, just like we did with TotalEnergies in all her four leases of OML 100, OML 99, OML 102 and OML 58. Zero routine flare is the way to go in Nigeria. And we’re going to see more of it, long before the 2030 deadline. Instructively, new projects are now designed and formulated on non routine flare.
How long should we wait before we can access cheaper and affordable cooking gas?
I think I have seen reports of gas price reduction in some areas in the news a few days ago. And I expect it to go round with time. Maybe, when next you go for your refill, you’re likely to experience it too. This is the outcome of every measure we took in the last few months in that regard. We had given a clear directive to all gas producers to prioritise local consumption of LPG, that is cooking gas, over and above exports.We went further to ask that they adhere to the Nigerian blend ratio of 20:80 for LPG. Blend ratios differ depending on your target market or export destination. So, as more gas producers halt export of LPG and reverse to the Nigerian blend ratio, more cooking gas would get to the Nigerian market. These changes, as they continue to take effect, will further drive down the prices.
What innovation have you brought to the gas sector under your watch?
I have this give and take approach in resolving issues in the industry. I try to make it a win-win situation for everyone. This way, we‘re sure to shake hands again and expand the frontiers of our business, when the opportunity presents itself. For me, confidence building is not an option in the business world. I always look forward to another day. This was how I approached issues in the 141MW Geometric Power Plant in Aba. And today, the plant is up and running. I took the same approach in resolving all contending issues in the $3.8bn Brass Methanol Project for the execution of the Gas Sales Purchase Agreement (GSPA). I make it a give and take solution, for there is always another day.
Have you uncovered any major legal, technical or political issues that impede smooth operations in the gas industry?
Not in that sense. But we’re doing a lot on the level of reviewing guidelines and regulations, as they become necessary or to reflect new realities in the sector. Legacy debts would have stood in the way of progress, anyway. These were monies owed local gas producers by GENCOs, that is the electricity generating companies. Some are as old as 2011. But as we speak, these debts are being sorted by the President, in a special structured payment plan. If left unattended, this would have impeded progress in our gas supply chain with attendant consequences on the whole country. But it was averted.
What are your plans for the next 3 years going forward?
I am for efficiency in gas delivery. I want it done faster and safer. So I want to put more infrastructure in place to evacuate gas to the end user faster and at the closest possible Point of Sale. Already, we’ve done a lot in this regard. We recently commissioned a handful of projects with the capacity to impact the Nigerian economy in the next 3 years and beyond. These are the AHL Gas Processing Plant, ANOH Gas Processing Plant and also, the 23.3km by 36 inches ANOH-OB3 Gas Pipeline.We’re still work in progress, notwithstanding the successes of the last one year. We’ve done the groundbreaking of another set of major life-changing projects already. These are jobs and revenue spinners you should look forward to in the next 3 years. These mega gas projects would add over a hundred thousand jobs to the Nigerian labour market. It is the 50,000 metric tonne LPG Terminal in Onne, in Rivers State, the Optimera Natural Gas facility in Lekki Free Trade Zone, that is Lagos State, and the 20,000 metric tonne Windek Energy Limited LPG Depot in Atabrikang, Ibeno in Akwa Ibom State. I say it again, Nigeria is a gas province, ready to light up the world.
