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The Gas Resource Base
The nations gas agenda is robust. It puts gas-to-power at the core, but also envisions
an aggressive gas based industrial growth. This in turn will drive further growth of
power demand.
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Realizing the Aspiration
FGN has embarked on a major reform of our gas sector to assure delivery of the
aspiration on a sustainable basis .
2. Put in place a transitional framework to facilitate gas access in the short to medium term
particularly for the Power sector
3. Redefined the Commercial Framework for domestic gas supply to assure long run
sustainability of supply pricing, contracting, etc.
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Table of Contents
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4 Step Strategic Framework towards Full
Market Status
Framework comprises an orderly transition from an intervention based kick- kick-off to one
of willing buyer willing seller by 2014
2014..
Programme is progressing steadily and on course
Power sector investors can look forward to a fully liquid gas market in Nigeria
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Roadmap to Free Market
The vision is to attain full market status with willing buyer willing seller by
2014/2015
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Sources of Gas for Potential Investors
3 sources of gas have been identified for potential investors in the Power sector.
Most dominant source in the short/medium term is the DSO
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DSO Sources of Gas for Potential Investors
Breakdown of Gas Supply Plan Major New Gas Supply Projects
DSO supply plan comprises existing, many ongoing gas projects and a few major new gas development
projects which are about to take off.
70%
70% of this short/medium term plan is targeted at the Power Sector (about 3bcf/d by 2015
2015))
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Gas Availability to Power Sector
About 3bcf/d targeted at Power Sector with existing PHCN plants being cardinal base load
consumers of the gas. Additional gas will come from other sources such as Independents
etc.
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Transitional Gas Pricing
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Gas Network Code Study: Network Code
requirements
The major concepts underlying the Code are that:
Gas transportation services should meet market
requirements on a non-
non-discriminatory basis;
System security, reliability and safety should be assured;
Tariffs should reflect the costs of service;
Phased implementation of necessary infrastructure to
support electronic transactions to enhance operations
reliability; and
Rules should be clear, unambiguous and comprehensive
allow free market solutions to develop; and
have mechanisms to handle industry complaints
The Code should evolve in response to market requirements
Effective modification process required
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Gas Infrastructure Programme for Flexible [5]. QIT-
QIT-Ajaokuta
Ajaokuta--Kano Line
Supply Over 1000km line to evacuate gas
from Exxon to eastern and
northern power plants
[2]. Ob/Ob Oben Link Gas can also be fed from the
Pipeline will bridge the East and West. existing Oben
Oben-- Ajaokuta pipeline
Excess gas availability in East. to the North through the Ajaokuta-
Ajaokuta-
Tendering process almost concluded for
Kano Pipeline
pipeline
[3[3]. Link
]. Link to to Eastern
Eastern Network
Network
22projects
projectsincluded
included here
here the
the Northern
Northern
Option
Optionpipe
pipelink
link(NOPL)
(NOPL)andand
the the
Ob/Ob
Ob/Ob
[1] ELPS Expansion to 2bcf/d CPF
CPFtotoNOPL
NOPL
ELPS
ELPS--C capacity is 1000mmcf/d. Will
Expansion to 2000mmcf/d by 2012
Willenable
enabledrydrygas specification
gas specificationandand
capacity
capacityboost
boost to to
over 300mmcf/d
300300mmcf/d
over mmcf/d to east
to
will enable growth of supply to
Western Power plants east
Ob/Ob
[4] Offshore Oso to QIT link
Enable additional 300mmcf/d from Exxon
by end 2013
ELPS-
ELPS-A loping to 600mmcf/d
600mmcf/d capacity Links Oso to QIT in Akwa Ibom
ongoing and on track for end Q1
Q1 2011
Will enable additional supplies from
Escravos axis
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Table of Contents
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Role of GACN in Domestic Gas Market
Primary aim
Coordinate streamlined process for wholesale gas supply from Gas Producers to eligible Gas
Purchasers within Nigeria
Ensuring a balanced growth of all critical sectors of the economy: Power, Gas Based Industries and Local
Distribution Companies
A transparent process for gas access , coordinated by the Gas Aggregation Company
Reduced complexity for investors to access gas
Faster time to GSAA closure, enabled by web available template GSPA/GTAs
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Table of Contents
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Contact Details Aggregation Company
Contact Persons:
- Management - Tinuola FESHITAN
email: tinuola.feshitan@gacn-nigeria.com
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Conclusion
Huge gas reserves which are now being deployed in a focused manner to
enable economic growth, which in turn will fuel further growth of the
power sector
All existing PHCN plants have a comprehensive supply plan for gas
supply and the framework for gas assures long run availability for
subsequent expansions
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THANK YOU
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