Seplat Energy Plc on Wednesday said there were huge business opportunities for investors in Nigeria’s transition to cleaner sources of energy.
Mr Roger Brown, the Chief Executive Officer Seplat Energy Plc, made this known while delivering a keynote address at the 2022 Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) in Lagos.
The News Agency of Nigeria reports that the topic of the panel session was: “Operationalising a Clean Energy Transition for Sustainable Development in Africa.
” Represented by Mr Effiong Okon, New Energies Director, Seplat Energy Plc, Brown said lack of access to energy by Nigeria and other African countries remain a huge opportunity for investors.
He said Nigeria in particular had a strong potential for growth and that energy transition was an opportunity to create a sustainable future for the country.
According to him, Nigeria’s population is projected to hit 329 million by 2040 with an electricity demand of 240TWh. Brown said there was the need for investment in gas and renewables such as hydro, solar and wind which would play key roles in Nigeria’s industrialisation in the near future.
He said: “The greatest business opportunity ahead of us is to supply the right mix of energy to support Nigeria’s growth.
“In doing so, we must make a positive social impact and contribute to Nigeria’s achievement of the United Nations’ Sustainable Development Goals.
” Brown said Seplat was in support of the Federal Government’s decision to make gas Nigeria’s energy transition fuel and would continue to make investments toward the development and utilisation of the country’s abundant gas resources.
While listing the company’s achievement, he said Seplat had since 2011 invested a capex of $1.7 billion in the sector and had paid $445 million dividends since its Initial Public Offerring (IPO).
He said the $700 million ANOH Gas Processing Company being constructed by Seplat and the Nigerian National Petroleum Company Ltd. at Asaa, in Imo was nearing completion.
Brown said the project, when completed would provide gas to boost the much-needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth.
Earlier, Prof. Olalekan Olafuyi, Chairman, SPE Nigeria Council, urged African countries to priotise reduction of energy poverty in the continent while also working on decarbonising the energy system.
Olafuyi said that the continent’s contribution to global carbon emission was relatively low.
He added that there was the need to utilise its huge hydrocarbon resources for industrialisation and human capital development.
Stakeholders in the gas sector on Tuesday called for a holistic approach in fixing Nigeria’s gas crisis, especially with the lingering supply shortage and price increment.The stakeholders identified insecurity, naira depreciation and lack of a workable pricing template as some of the factors affecting the development of Nigeria’s gas sector.They spoke during a panel session with the topic:” Harnessing the Opportunities in the Nigerian Gas Sector,” at the 2022 Nigerian Oil and Gas (NOG) conference in Abuja.The News Agency of Nigeria reports that those who spoke included Mr Roger Brown, the Chief Executive Officer, Seplat Energy Plc, Mr Phillip Mshelbila, Chief Executive Officer, Nigeria LNG Ltd. and Mr Ed Ubong, President, Nigerian Gas Association ( NGA).Brown said Nigeria was blessed with abundant gas resources but needed the right investments to maximise opportunities in the sector.He said: “There’s a wall of money ready to come into this country; but they look at barriers to it and one of the biggest barrier is the currency.“So, currency convertibility you know, bringing equipment in dollars, and then having a mainly Naira revenue stream.“These things are fixable. We need to get those right there in any amount of big projects and really exciting projects. And what I like about the economics here in Nigeria is that they are unbelievably good.”Rogers said with majority of Nigerians lacking access to energy, it was a huge opportunity for both local and foreigner investors to come into the sector.He said the $700 million ANOH Gas Processing Company being constructed by Seplat and the NNPC at Asaa, , in Imo State was near completion.Rogers said the project when completed would provide gas to boost the much-needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth.Also, Mshelbila said there was the need for a collaborative and comprehensive solution to the issue which was already captured in the Decade of Gas Plan of the Federal Government.He said: “What many people may not be aware of is that we actually have the plan captured in the decade of gas framework.“It’s an excellent piece of work. It has looked at the demand side of natural gas in Nigeria, domestic and export.“It has looked at the supply side, then looked at infrastructure, and then it has looked at the commercial or economic framework that is needed to address all of this. And it has outlined very specific things that need to be done to address it.”The NLNG boss said the plan included construction of gas pipelines, the ongoing NLNG Train 7 project as well as gas to power initiative that would drive industrial growth in the country.On his part, Ubong tendered an apology to Nigerians for the scarcity of gas in the country, especially within the last six months.“There is not enough gas for cooking, so the cooking gas prices have gone up. There is not enough gas to fire the terminal plant, so there is virtually no electricity,” the NGA president said.He said it was very clear that upstream players were not happy with the legacy debts that they were being owed for gas supplied for power generation.Ubong said: “My appeal to the Federal Government is let’s find a way and pay this money so that there will be peace.“It is my suggestion that the Federal Government should then hold upstream producers.“The government can thereafter say, ‘I have defrayed my debt, you must then bring the gas volumes that you promised so that there will be enough supply in the country.”NewsSourceCredit: NAN
Seplat Energy Plc has recorded a pre-tax profit of 177 million dollars for the year ended December 2021.
The amount is 321 per cent higher than the 80 million dollars recorded by the company, which is listed on the Nigerian Exchange and the London Stock Exchange, in 2020.
Mr Roger Brown, Chief Executive Officer, Seplat Energy Plc, made the announcement while speaking with newsmen after the 9th Annual General Meeting of the company on Wednesday in Lagos.
Brown said Seplat’s revenue increased by 38 per cent to 733 million dollars in 2021 when compared with 531 million dollars in the 2020 financial year.
He said the company made 618.4 million dollars from oil sales while 114.8 million dollars revenue was made from gas in 2021.
According to him, oil revenues went up on higher price of 70.54 dollars per barrel in 2021 compared to the 39.95 dollars per barrel it was sold in 2020 as a result of the COVID-19 pandemic.
Brown said the board also agreed on the payment of dividends at 10 cents per share for its shareholders, which would be paid quarterly.
“So, the company has bounced back from 2020. It is in a strong footing going forward and the circumstances show that we are having a better result going into 2022,” he said.
Brown also noted that the ongoing conflict between Russia and Ukraine had provided Nigeria with a unique opportunity to take its gas into the European market.
He, however, said Seplat remained committed to meeting the domestic gas needs of the country in order to reduce lack of access to energy, which was critical to development.
Also, Dr ABC Orjiako, outgoing Board Chairman, Seplat Energy Plc, said the company would continue to make massive investments to grow its oil and gas production and reserves.
Orjiako said Seplat had paid over 2 billion dollars in taxes and royalties to the federal government and had also paid about 12 billion dollars to its production partners, including the Nigerian National Petroleum Company (NNPC) Ltd.
He said the 700 million dollar ANOH Gas Processing Company, being constructed by Seplat and the NNPC at Asaa, in Imo, was nearing completion.
He said the project, which would produce about 300 MMscfd, reinforced Seplat’s commitment towards its leading position in the transition to a cleaner source of energy, while providing sustainable development to its host communities.
Orjiako said the project, when completed, would provide gas to boost the much-needed supply of power to millions of homes and businesses across Nigeria to facilitate better standard of living and drive economic growth.
He also provided update on Seplat’s recent acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation, Delaware, United States of America.
Orjiako said the company was currently engaging the government and its partners to obtain the needed consent to finalise the deal.
Commenting on the recent launch of `Seplat Energy Tree 4 Life Initiative’ in Abuja, he said the project would be piloted in five states with the goal of planting one million trees annually for the first five years.
He said: “Environmental sustainability is critical to our operations. The climate change situation needs to be mitigate, and that is why we took up this initiative.
“We are also targeting to take out flares in our operations by 2024, six years ahead of the time frame of 2030 set by the Federal Government.”
Roger Brown, Chief Executive Officer (CEO), Seplat Energy Plc, says the completion of the company's Assa North-Ohaji South (ANOH) project in Imo State will positively boost the supply chain in the oil and gas industry of the nation.
Brown told reporters on the sidelines of the 2022 Offshore Technology Conference that just concluded in Houston, Texas, United States on Thursday.
The CEO who spoke about the progress made so far on the ANOH project, described it as a game changer for the company as well as for the oil and gas industry.
According to him, the 300 million standard cubic feet per day (mmscfd) gas project will be operational next year compared to the previous initial target of the first half of 2022.
He said: “The ANOH is a game changer in terms of gas business. By the middle of next year, the project will be underway.
“The first gas is being delayed because one of the connecting pipelines is being delayed due to supply chain issues to get the steel pipes from China. However, it is a temporary problem.
“For us, the 300 gas plant is material and will do the processing of dry gas that will be supplied to industrial customers.
“The ANOH field, which is one of the largest onshore fields in Nigeria, is a condensate-rich field. The liquid is in two deposits, but one of them in particular is rich in it.
Brown, however, said there will be almost 10,000 a day of condensate production when the company starts production.
He said: “We will get 50 percent of the production from the ANOH gas plant.
"We are going to have 50 percent of the 300 million standard cubic feet per day of gas, which is 150 of processed gas, plus 10,000 per day of production in condensate."
According to him, Seplat as a company will reinforce its gas credentials in the country.
“We will become one of the largest gas processing companies alongside the Nigerian government.
“It's a very important part of our business model to offer that.
“We started investing in gas in 2012, when we bought the first assets from Shell. Gasoline was worthless then, it was a headache,” Brown added.
He said that the company's operations over the years had become commercial in the country, especially with the supply of domestic gas.
He said: “It is a good business opportunity and the ANOH gas plant will increase and grow quite dramatically.
“We strongly believe in domestic gas, we also believe in Nigerian liquefied natural gas (NLNG) for export. But for all that is exported it will be bad for Nigeria.
“We need to develop more domestic gas because the price of diesel in the country is crazy. The average Nigerian is spending a lot on power, electricity, diesel and PMS (gasoline) generators.
“It is holding the country back enormously. It is very polluting, noisy and very expensive.
“It is five times more expensive than gas and it is not creating jobs in the country because companies cannot afford to operate with fuel.
“ANOH will create enormous value for the country. We work with the government, we would love for its completion to be faster”.
NAN reports that the ANOH plant project is one of the federal government's seven critical gas development projects of 2018 and one of the most strategic gas projects in Nigeria.
It will process gas captured from the Seplat onshore oil block under oil mining lease (OML 53) in Imo state.
The project is being built by ANOH Gas Processing Company Ltd., (AGPC), an incorporated joint venture (IJV) owned equally (50 percent each) between Seplat and Nigerian Gas Company (NGC), which is an arm of Nigerian. National Oil Company Ltd. (NNPC).
Seplat and NGC previously provided a combined $420 million equity financing and the project is now fully funded.
In January 2021, Seplat raised $260 million, provided by a consortium of seven banks: Stanbic IBTC Bank Plc (advisor), United Bank for Africa Plc, Zenith Bank Plc, FirstRand Bank Ltd., (London Branch) RMB Nigeria Ltd. ., Mauritius Commercial Bank Ltd., Union Bank of Nigeria Plc and FCMB Capital Markets Ltd.
The construction cost of the plant is estimated at 650 million dollars. The two interested parties, which include Seplat and NGC, previously provided combined equity financing of $420 million.
AGPC's construction cost was reduced to $650 million, including financing costs and taxes, as a result of the cost optimization program, significantly less than the original projected cost of $700 million.
Seplat is a supplier of natural gas to Nigeria's energy sector, supplying around 30 percent of the gas used for electricity generation.
The International Society of Petroleum Engineers said on Wednesday that investment in crude oil production over the past five years has witnessed a drop of around 50 percent.
Kamel Ben-Naceur, chairman, said the drop was due to the global outcry over reducing carbon dioxide emissions and the negative impact of the COVID-19 pandemic on the oil and gas industry.
The Nigerian News Agency reports that Ben-Naceur said this while delivering his keynote speech at the ongoing Offshore Technology Conference (OTC) in Houston, Texas, USA.
Ben-Naceur cited 2015 as the start of a slump in investment in the industry's upstream sector, but added that the situation had changed before the global pandemic in 2020.
According to him, upstream investment experienced sharp falls by 26 percent between 2015 and 2016.
“However, investment rose again until 2019 before experiencing a 30 percent drop in 2020.
“If you look at the relative decline in investment in the upstream sector in general, in less than five years, we have reduced upstream investment by 50 percent, which is almost unheard of.
“You have to go back to the mid-1980s to see that kind of trend.
"This came as Nigerian operators are calling for more investment in the sector to drive the necessary development in the sector and impact the country's economy," he said.
The President noted that the COVID-19 pandemic had a unique impact on the energy industry and would pave the way for the energy transition on its way to net-zero emissions.
“The COVID-19 pandemic caused the largest one-year drop in oil demand at 10.4%, while natural gas demand fell by about 2%.
“In addition, the demand for coal and nuclear fell by about four percent. Hydroelectric and renewable energy demand increased, albeit by smaller margins,” Ben-Naceur noted.
He expressed optimism that demand would continue to rise in 2023 as demand for crude oil had returned to pre-pandemic levels, noting that natural gas had done better.
Ben-Naceur said: “The 'most dramatic' increase is in the price of natural gas from April 2020 to the end of 2021, natural gas went from about three or four dollars per MMbtu to about $40 per MMbtu, a dozen increased folds.
"We've never seen that kind of increase in gasoline prices in a one-year period."
He stressed that there were signs that the situation had changed, saying "there has been a significant increase in upstream investment in 2022."
On the reality of the energy transition, Ben-Nacuer said that the energy transition was more like a reality, with sales of electric cars rising from one million to two million before 2018 to nearly seven million, or nine percent of new cars sold in 2021.
“Renewable energy capacity continues to be added, and the industry is always learning about the incentives of decarbonization.
“There are a few different energy transition scenarios predicted by the International Energy Agency, and each one will bring different costs and outcomes.
“For the first time, today's pledges, if implemented in time and fully, will keep the increase in global average temperatures in 2100 below two degrees Celsius.
“Decarbonization will require many factors in combination to be successful, including avoided demand, CO2 capture and storage, hydrogen, bioenergy, technological performance, electrification, other renewables, and other fuel shifts.
“But no matter the mix or the policies, reaching net-zero emissions still requires more investment in oil and gas.
“We still need to invest more than we invest today. Investment in the oil and gas industry will be crucial.
“We are not investing enough in clean energy and that is the big problem facing the world.
“Part of that investment will be in carbon capture and storage, which is projected to expand significantly by 2030.
“The world continues with its need to access energy in a safe, affordable and clean way. Reducing greenhouse gas emissions and burning are critical.
"Accelerating the energy transition will still require a large share of oil and gas," he added.
Meanwhile, stakeholders in the Nigerian oil and gas industry have scrambled to take advantage of the federal government's declaration of the year 2021 to 2030 as a gas decade.
Some Nigerian operators participating in the OTC, such as Lee Engineering and Construction Company Ltd., OILSERV Ltd and Seplat Energy Plc, emphasized the need for local companies to invest in the natural gas sector of the industry.
They also called for more investment, insisting that huge opportunities were available to investors in the sector.
The president of Lee Engineering and Construction Company Ltd., Dr. Leemon Ikpea, emphasized the importance of improving the development of the country's infrastructure.
He stated that his company remained committed to creating much-needed infrastructure, which is why the company had committed more than $100 million to build a manufacturing yard in Warri, Delta, its operating base.
“The project, scheduled for commissioning this year, will ensure the manufacture of any equipment needed in the oil and gas industry locally and across the African spectrum.
"The company will focus on manufacturing and fabricating any equipment needed in the oil and gas industry."
On Nigeria's workforce capacity, he noted that “when I was a manager, I didn't just sit in my office. I took time to understand how the company operated.
“I noticed that many Nigerians were doing various jobs like electricians, welders, etc. The foreigners were there mostly as supervisors. There are many skilled Nigerian workers around.
“The idea of moving from contract hunting to manufacturing the equipment and parts needed by the oil and gas industry has many benefits for the sector. First of all, it generates technology transfer, it saves foreign exchange, it creates capacity along with many other multiplier effects,” he explained.
Ikpea identified the commitment and timely delivery of quality work as some of the qualities that distinguish companies that want to stand out in the development of the sector.
For his part, the Chairman of Oilserv Ltd., Mr. Emeka Okwuosa, said his company's involvement in the construction of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project was an indication of Nigeria's commitment to the energy transition. .
According to him, the collection of natural gas, which is abundant in the country, is key to Nigeria's energy and economic development.
“The AKK project will stimulate the development of gas infrastructure and industrialization in Nigeria.
Okwuosa said: "The AKK gas project, when completed, will boost the agricultural and manufacturing sectors, carbon footprint as part of measures to reduce global warming and provide gas for power generation and gas-based industries." .
He said that the project is aimed at transporting (raw) natural gas, which would allow the production of Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), among others.
“The project is important for Nigeria because the gas is what will help Nigeria to develop. Development cannot happen without energy and our largest form of energy in terms of availability is gas.”
For Seplat Energy Plc, there are huge opportunities in the gas business that, when seized, would transform Nigeria and Africa, making it a potential hub of the future.
Regarding the growth expectations of the sector, the executive director of the company, Mr. Roger Brown, reiterated that the development of gas and technology are key to guaranteeing a robust transition.
He said: “As the sector grows and evolves and struggles through transition, we need to be super efficient in what we do, particularly upstream, and technology is very critical to that.
“We believe that IT and cyber support are more efficient technologies that are needed in infrastructure development. We are bringing more technologies to our project such as the use of solar energy, gas. We believe in the gas business since we will develop LPG.
“We will complete the Assa North-Ohaji South (ANOH) gas plant next year and it is a game changer for us. We're also upgrading the Sapele gas plant right now and putting in LPG and expanding that second pillar of our business which is processing gas into electricity.
“We are really looking at what renewable technologies will be adopted in our business that will be the best for Nigeria in the future. Our view from our business model is that solar energy will be the winning game changer.
"For us at Seplat, the investment never stops, as we will be making more investments in the coming months of the year as we expand the scope of the transition."
The weekly activities of the Nigerian National Petroleum Company (NNPC) began as staff were urged to prepare for higher levels of efficiency in 2022 as it now operates under the Companies and Allied Affairs Act (CAMA).
Addressing the workforce at the first corporate town hall meeting for 2022, NNPC GMD/CEO Malam Mele Kyari outlined the changes ahead.
Kyari assured that no member of the NNPC workforce would lose their job as a result of the impending reforms to be introduced under the PIA transition, but that they must be productive, accountable and transparent in their work.
He called for maximum dedication in the performance of their duties in order to improve profitability, noting that under the PIA, the company would operate as a contractor to the nation at large.
The NNPC CEO also said that Nigerians were expecting nothing more than higher profit levels.
Kyari explained that all asset transfers and structural changes associated with the transition process will be completed before the end of the year.
Speaking on behalf of NNPC staff, Group Executive Director, Corporate Services, Ms. Aisha Katagum, pledged the commitment of the entire workforce to accomplish the tasks set out as spelled out by /CEO.
Meanwhile, NNPC Limited executed various Memorandums of Understanding (MoUs) and agreements with some joint venture partners, strategic allies and stakeholders in 2021.
These agreements were aimed at strengthening the corporation's profitability throughout its operational value chain.
They were also designed in line with the national objectives of the oil and gas industry on the repositioning of gas for rapid expansion of the national, regional and export markets.
The first execution of these agreements began with the signing of Final Investment Decision (FID) partners, DSV Engineering and the Nigerian Content Development and Oversight Board (NCDMB), for the $3.6 billion Brass Methanol Plant. dollars in Odioma, Brass Island, Bayelsa.
The project, upon completion, would be the largest methanol plant in Africa and the first in Nigeria.
Anchored Project Fertilizer and Petrochemical Company Limited (BFPCL), is an incorporated entity owned by DSV Engineering and NCDMB
Speaking at the event, NNPC Limited GMD/CEO Malam Mele Kyari said he was pleased with the Government's ongoing efforts to provide value to Nigeria's gas resources.
He described the FID as one of the most significant investment developments in the gas sector in recent times, noting that the project coincided with the previous declaration of 2020 as the year of gas and 2021-2030 as the decade of state gas. for Petroleum Resources.NNPC GMD Malam Mele Kyari
The construction phase of the project would create some 30,000 temporary jobs in addition to the 5,000 permanent jobs that would be created when the plant comes online.
Another major gas development deal was the signing of a $260 million deal with Assa-North-Ohaji South (ANOH) Gas Processing Company Limited (AGPC) for the financing of the ANOH Gas Project in February.
ANOH Gas Processing Company Limited (AGPC) is an incorporated joint venture owned 50:50 by Gas Company (NGC), a wholly owned subsidiary of NNPC and Seplat Petroleum Development Company.
The ANOH Gas Project, which has been described as a game changer, another milestone in the journey to deliver more gas to the domestic market for the promotion of power generation and rapid industrialization in the country.Gas flaring comes to an end in Nigeria
It would deliver 300 million standard cubic feet of gas per day (mscfd) and 1,200 megawatts of power when completed.
NNPC's gas development and commercialization program received another boost with the signing of the Oil Mining Lease (OML) 143 Gas Development Agreement (GDA), Sterling Oil Exploration and Production Company (SEEPCO).
The project would boost the country's gas production by 1.2 trillion cubic feet (tcf).
GMD/CEO NNPC Ltd Kyari said gas from the project would be processed at the 125 million standard cubic feet (mmscf) per day Ashtavinayak Hydrocarbon Limited (AHL) gas plant located in Kwale, Delta State.
SEEPCO Group Managing Director, Mr. Tony Chukwueke, said the OML 143 GDA was unique in two ways.
“First, it is the first Agreement in Nigeria to completely separate gas development from oil production, an agreement that will enable the holistic development of gas potential in the block.
“And it is the first of its kind to expressly include terms that encourage the contractor to be effective in managing costs, generating significant revenue for the Federal Government, NNPC and other stakeholders.”Port Harcourt Refinery
Also in May 2021, GMD/CEO Kyari directed the NNPC to sign a series of agreements with Shell Nigeria Exploration and Production Company (SNEPCo) and other PSC partners.
PSC partners include Total Exploration and Production Nigeria Limited (TEPNG), Esso Exploration and Production Nigeria Limited (EEPNL) and Nigerian Agip Exploration (NAE) to renew Oil Mining Lease (OML) 118 for a further 20 years.
The execution of these agreements resolved the disputes surrounding the Deep Offshore Block, OML 118, which led to the renovation of that acreage with the prospect of a new investment of 10 billion naira in the development of the Bonga South-East Field.
The five signed agreements include, Dispute Settlement Agreement, Settlement Agreement, Historic Gas Agreement, Custody Agreement and Renewed PSC Agreement; all of these agreements would further boost the nation's oil production.
It is worth noting that the OML 118 dispute lasted for more than 12 years before Kyari intervened.
His knife of conciliatory leadership has cut through several seemingly irreconcilable and protracted disputes in the oil industry.
This is yet another indicator of the fact that NNPC places a priority on ensuring and maintaining a cordial and peaceful relationship between all of its stakeholders and partners.Governor Nasir El-Rufai
Still in 2021, the Nigerian National Petroleum Corporation's (NNPC) push to increase refining capacity in the country was bolstered by contracts for the rehabilitation of the 210,000-barrel-per-day capacity Port Harcourt refinery in Alesa-Eleme, Rivers and the Warri and Kaduna refineries, in July and August.
The PHRC rehabilitation project, which had a completion time of between 18 and 44 months in a three-phase agreement, was awarded to Milan-based Tecnimont SpA for an overall contract price of $1.5 billion, including VAT and other legal payments.
An elated NNPC GMD, Kyari, described the PHRC rehabilitation project as a dream come true, noting that the project was in line with President Muhammadu Buhari's promise to the Nigerian people to make the refineries work.
In August, the NNPC, responding to a presidential directive, stepped in and provided a solution to the perennial power supply challenge in Maiduguri, Borno State.
The intervention saw the execution of Engineering, Procurement and Construction (EPC) and Equipment Procurement contracts for a 50 Megawatt (MW) Emergency Power Project in Maiduguri.
The project, which had become an integral part of the ongoing efforts to deepen the NNPC's domestic gas utilization plan for the nation's socio-economic growth, had China Machinery Engineering Company (CMEC) as the EPC contractor, while General Electric (GE) became the equipment manufacturer.Governor Abdullahi Sule
Speaking at the opening ceremony, NNPC GMD/CEO Kyari explained that the Corporation, through its subsidiary, NNPC Gas and Power Investment Company (NGPIC), decided to intervene in the Maiduguri Energy Situation Project, which is would fire with liquefied natural gas. Gas (LNG) and operate commercially.
The Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline was also conceptualized to transport natural gas from Ajaokuta in Kogi State to Kano in Kano State through various states and urban centers as part of the pipeline. trans nigeria.
Three of the contiguous states, Kaduna, Kano and Nasarawa signed different agreements with the NNPC in conjunction with the Gas Aggregation Company of Nigeria, GACN for the expansion and utilization of gas supply to their states.
At the MoU Execution Ceremony, NNPC GMD/CEO Malam Mele Kyari described the signing of the agreement as another turning point in the Federal Government's Gas Decade initiative, which aims to utilize the abundant gas resources of the nation to feed the nation's economy.
Kaduna State Governor Malam Nasir El-Rufai said the state government was delighted at the prospect of having an additional energy source to power the state's businesses.
In Nasarawa, the signing of the MoU, which was the climax of the well-organized Nasarawa Business Round Table, was witnessed by the Governor of the State, Ing. Abdullahi Sule, GMD/CEO NNPC Limited, Kyari, and the Executive Director of the Gas Group & Power, NNPC Ltd, Mr. Mohammed Abdulkabir Ahmed.
Other attendees at the event included Group General Manager, NNPC Group Public Affairs, Malam Garba Muhammad, Nigerian Gas Marketing Company General Manager, Eze Justin Ezeala, and Axxela CEO, Mr. Bolaji Osunsanya.
Governor Abdullahi Sule called on the indigenous people of the state to take advantage of respective opportunities in the gas value chain, such as gas distribution, CNG stations, captive/integrated power generation, LPG trading, the commercialization of gas torches, among others.
It should be noted that these various agreements represent an important step in NNPC's marketing campaign and, more importantly, in the federal government's gas expansion program.
With the signing of the PIA and the subsequent transformation of the NNPC into a fully commercial entity, operating under the Companies and Allied Matters Act, the multiplier effects of these agreements on the ongoing reforms of the NNPC and the oil industry are truly enormous. .
Also read: NNPC reviews 2021 activities as Buhari inaugurates board
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