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How Oredo gas scheme will pump N2.8tr to Nigeria’s 2021 budget, beyond

All things being equal, fact check shows that not less than N2.8 trillion-revenue is expected from a new 200 million cubic feet gas project being promoted by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC). This revenue is expected to feed the just passed 2021 N13.6tn Appropriation Act.

However, the revenue is expected to be made in about 25 years as the Integrated Gas Handling Facility (IGHF) and LPG Units project would contribute at least $300 million yearly, bringing revenue to about $7.5 billion (N2.8 trillion) at full output. The project, which could be commissioned later this week, is coming shortly after a new pipeline project, the Ajaokuta-Kaduna-Kano pipeline, kicked off. The NPDC IGHF according to the NNPC would yield 82mmscfd of lean gas or methane, which is equivalent to 366.5MW of electricity per day.  If operated at full capacity, the facility could provide gas resources that could generate as much as 3.2 million megawatts of electricity in about 25 years. We gathered that the 82mmscfd translates to $205,000 per day or approximately $75 million per year at $2.5 per mscf of gas while there would be additional 330 tonnes per day of LPG, translating to about 16-20 tonnes LPG trucks per day for the domestic gas market. This yields about N73.6 million per day or N26.8 billion per year.