Generating electricity from natural gas:

The way forward for Nigeria

A presentation by: NNPC FSTP

Class E, study group 3

Presentation outline

Introduction

Current power generation status in Nigeria

Power generation using natural gas

Technology and challenges of using natural gas

Achieving the target

Conclusion

INTRODUCTION

Electricity is the flow of electrical power or charge. It is both a basic part of nature and one of our most widely

used forms of energy.

Natural gas is a naturally occurring hydrocarbon gas mixture

consisting primarily of methane, result from the decomposition of plant and animal materials

over millions of years

NATURAL GAS + TECHNOLOGY = ELECTRICITY

CURRENT POWER GENERATION STATUS IN NIGERIA

Installed capacity Available capacity Demand

Electricity in Mega watts

8644 3800 60000

5000

15000

25000

35000

45000

55000

65000

Power generation status in Nigeria

Current power status contd…

South Africa Brazil Nigeria

Population (In Millions) 50 192 150

Electricity supply ('000 MWs)

40 100 3.8

25

75

125

175

225

Comparison of power generation and population

Issues of power generation in Nigeria

Under-Investment

Stagnated Power Generation Growth

Inadequate Operations and Maintenance

Lack of Human Capacity development

Issues of power generation in Nigeria

Under utilization of natural resources (natural gas)

Seasonal variance due to dependence on Hydro electricity

Lack of Private sector involvement

Natural gas option

Steam Generation

units

Gas turbines unit/ Natural gas fired reciprocating unit

Combine cycle units

Natural gas fuel

Cell Units

Natural gas can be used to generate electricity in a number of ways

Natural gas option• Steam Generation units

This the most basic system use for electric generation. It consists of a steam generation unit, where fossil fuels are burned in a boiler

to heat water and produce steam that

then turns a turbine to generate electricity

Natural gas option• Gas turbines unit/ Natural gas fired reciprocating unit

In these types of units, instead of heating steam to turn a turbine, hot gases from burning fossil fuels (natural

gas) are used to turn the turbine

and generate electricity

Natural gas optionCombine cycle unitsthere is both a gas

turbine and a steam unit, all in

one. The gas turbine

operates in much the same way as a

normal gas turbine,

the waste heat from the gas-

turbine process is directed toward

generating steam, which is then used

to generate electricity.

Natural gas optionNatural gas fuel Cell

Units

Natural gas fuel cell technologies are in development for the generation of electricity. Fuel cells are sophisticated devices that use hydrogen to generate

electricity, much like a battery. No emissions are involved in the

generation of electricity from fuel cells, and natural gas, being a

hydrogen rich source of fuel, can be used

Natural gas optionThe Nigerian Advantage

Nigeria holds the 7th largest

natural gas reserves in the

world, with 187 trillion cubic

feet and a further undiscovered

potential of 600 trillion cubic

feet of gas.

Natural gas optionAdvantages of power generation using

natural gasFewer Emissions

• Cogeneration

Combined Cycle Generation

• Cheaper

Fuel Cells

Natural gas optionChallenges of power generation using

natural gasStatistics of Nigeria's Natural Gas Resource

Natural Gas Reserves 187 tcf

Daily Production 8.0 billion cubic feet per day

Gas Flared 1.4 billion cubic feet per day

18% of gas produced daily is flared

Natural gas optionChallenges of power generation using

natural gasOther challenges include:

Regular Vandalism of Gas Power Installations

Inefficient investment in generation and distribution

High capital intensive nature of gas power projects

Inefficient and inadequate gas transmission networks

Poor utilization of existing assets and deferred maintenance

Delays in the implementation of new projects

Inefficient billing and metering system: low efficiency in billing

and revenue collection by distribution companies thereby

discouraging investors

Achieving the target

• Power Generation gap of 26,561MW expected to be closed by 2020. Consequently, an annual growth of approximately 3,000MW is required

Achieving the target (The role of NNPC)

• NNPC should encourage the multinational oil companies (JVs and PSCs) in Nigeria to embark on IPPs.

• NNPC in collaboration with the oil majors has commenced construction another pipeline system in order to double the capacity

• NNPC also supplies natural gas to PHCN at subsidised rate and ahead of payment

Conclusion

Thank you for your timeQuestions