October 16, 2018

Neoleum Energy CEO, Dikko Atanu gave a keynote speech at the 11th Nigeria Gas Association in Abuja, Nigeria on the topic of “Driving Power Generation Sufficiency with Gas Supply Consistency”.

NGA 2018 Image Dikko focused on domestic LNG to power, as an alternative method to providing redundancy to the existing pipeline gas infrastructure, and ultimately improving power supply. He also highlighted the use of modular barge and floating LNG facilities, to monetize large gas flares, and stranded gas reserves via a fast track approach.

A current concern highlighted was the lack of gas storage or a buffer built into the existing gas blueprint, and specifically into the NGC/NNPC gas pipeline systems. This leaves generating companies at the mercy of the integrity of the pipeline. In many developed countries, the use of gas storage via depleted reservoirs; gas caverns and salt domes fill the void in gas disruptions and aids in smooth gas nominations.

He stated that "in the US for example, at its ca. 400 active underground storage facilities, approximately 4 trillion cubic feet of natural gas can be stored and withdrawn for consumer use at any given time, and when it is needed most (winter season). On policies, he highlighted that the gas master plan framework, should be an evolving document that includes the deployment of strategic gas storage reserves in key areas, and new pipelines or existing pipelines should have strategic gas/ LNG storage facilities. The economic benefit far outweighs the incremental cost of such an infrastructure”.

Finally, Dikko presented a solution for bankable states such as Lagos and for IOC's, in which a predetermined 0.5 to 1 million tons per annum (MTPA) FLNG unit and a commercial framework that includes pricing under $2/mcf or LNG Sales and Purchase Agreement (SPA), and a bankable Power Purchase Agreement (PPA) are fully integrated. Neoleum has a FLNG and Floating Storage Regasification Power (FSRP) solution that delivers an accelerated project to convert stranded gas resources to proven reserves and first gas or power with 24 months. Neoleum's solution provides cost effective infrastructure by levereaging its Chinese technical partners, cheap source of gas from stranded gas fields in Nigeria, and access to development capital.

Dikko also shared his aspiration to drive the adoption of LNG domestically, and grow global LNG supply sources via Neoleum's new and integrated approach to FLNG deployment.

Nigeria Gas Association is the leading professional body responsible for the promotion and protection of the interests of the gas industry in Nigeria. The earliest members include the Nigerian National Petroleum Corporation (NNPC), the Shell Petroleum Development Company (SPDC), the Nigeria Liquefied Natural Gas Limited (NLNG), Chevron Nigeria Limited, the Nigerian Gas Company (NGC), Elf Petroleum, Mobil Producing Nigeria, the Nigerian Agip Oil Company (NAOC) and Conoco Energy Nigeria Limited.