Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream & Downstream Petroleum Regulatory Authority, has become a participant in AEW: Invest in African Energy 2024, where he will highlight Nigeria's advancements in regulatory frameworks and significant infrastructure initiatives in the midstream and downstream sectors.
Farouk Ahmed, CEO of the Nigerian Midstream & Downstream Petroleum Regulatory Authority
This month, Nigeria entered into an agreement with Equatorial Guinea to initiate the Gulf of Guinea Gas Pipeline Project. This collaborative regional pipeline will facilitate the transportation of natural gas from Nigeria to be processed at Equatorial Guinea’s Punta Europa facility. The initiative highlights the significance of cross-border infrastructure in the monetization of oil and gas resources across Africa.
In the context of Nigeria's rapid infrastructure advancements, Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is set to participate as a speaker at the African Energy Week (AEW): Invest in African Energy 2024 conference. Scheduled for November 4-8 in Cape Town, Ahmed will share valuable insights regarding Nigeria’s regulatory innovations and the infrastructure developments that are enhancing regional energy integration.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has recently revised the Nigerian Gas Transportation Network Code to enhance the accessibility of natural gas throughout Nigeria. This code regulates key gas pipeline systems, including the Escravos-Lagos Pipeline System and the OB-3 pipeline, which play a vital role in supplying gas to power generation companies, industries, and wholesale gas distributors. These regulatory measures are intended to align with the nation’s strategic goals in the energy sector, fostering a dependable and transparent gas market.
Furthermore, the NMDPRA's regulatory initiatives are reflected in the ongoing infrastructure projects, such as the Ajaokuta-Kaduna-Kano pipeline, anticipated to be completed by mid-2024. This pipeline, with a capacity of two billion cubic feet per day (bcf/d), is fundamental to Nigeria’s plan to improve domestic gas distribution and promote industrial growth. Additionally, Nigeria is actively participating in the 3.3 bcf/d Nigeria-Morocco Gas Pipeline project, which is progressing as a significant infrastructure endeavor aimed at enhancing energy connectivity between West Africa and Europe. These initiatives are further supported by the launch of three new gas projects designed to increase domestic gas usage and combat energy poverty.
In addition to various pipeline initiatives, Nigeria is witnessing a surge in infrastructure projects throughout the nation. Recently, Shell, a major player in the energy sector, made a Final Investment Decision (FID) to build a gas supply facility capable of delivering up to 100 million standard cubic feet of gas daily to the Dangote Fertilizer and Petrochemical plant over the next decade. This initiative is vital for Nigeria's industrial advancement and aligns with the overarching objective of increasing domestic gas usage. Moreover, the expansion of Nigeria LNG (NLNG) is underway with the construction of a seventh train, which was reported to be 52% complete as of November 2023. This development is set to boost Nigeria’s LNG output by 7.6 million tons annually, reinforcing its position as a top LNG exporter.
Furthermore, Nigeria is taking the lead in implementing Naira-based crude oil transactions for refineries to bolster the local currency and promote energy independence. The Nigerian government recently permitted the Nigerian National Petroleum Corporation (NNPC) to conduct crude oil sales in Naira to the Dangote Refinery and other local refineries. This strategy is designed to fortify Nigeria’s currency and enhance domestic energy production. Additionally, partnerships with Saudi Arabia are improving access to liquefied petroleum gas (LPG). In February, both countries initiated the National Human Capacity Training Program for the Adoption of Liquefied Petroleum Gas, which includes establishing training centers for local communities and supplying LPG to residents.
“The regulatory advancements by the NMDPRA are key in shaping Nigeria’s energy sector. By implementing comprehensive frameworks and driving infrastructure development, the NMDPRA is enhancing transparency and efficiency in Nigeria’s energy landscape, setting a standard for regulatory excellence in Africa,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.
At AEW: Invest in African Energy 2024, Ahmed will present an overview of Nigeria's midstream and downstream strategies, highlighting recent developments. His analysis will delve into how these initiatives are establishing Nigeria as a significant contributor to Africa's energy sector, emphasizing the importance of infrastructure development, energy security, and regional collaboration.