NNPC, Kaduna sign MoU on gas utilisation, expansion

…As Kyari assures supply will revamp industries

Nigeria’s domestic gas penetration aspirations received a major boost as the Nigerian National Petroleum Corporation (NNPC), and the Kaduna State Government signed a Memorandum of Understanding (MoU) for the utilisation and expansion of gas supply in the state.

The MoU was signed Thursday at the Sir Kashim Ibrahim House in Kaduna, by the Group Managing Director, NNPC, Mele Kyari, on behalf of the Corporation while Governor Nasiru el-Rufai signed on behalf of the State Government.

Speaking at the MoU Execution Ceremony, Kyari described the moment as yet another watershed in the Federal Government’s Decade of Gas initiative, according to a statement signed by the Group General Manager, Group Public Affairs Division, NNPC, Garba Deen Muhammad.

The initiative is aimed at utilising the abundant gas resources to power the nation’s economy through a number of strategic gas expansion projects such as the ongoing Obiafu-Obrikom-Oben (OB3) and Ajaokuta-Kaduna-Kano (AKK) gas pipeline projects.

The MoU, which was facilitated by the Gas Aggregation Company of Nigeria (GACN), would ensure long-term involvement and support for Kaduna Government and key sector players such as the Nigerian Gas Company (NGC), the Nigerian Gas Marketing Company (NGMC), and virtual pipeline companies to ensure supply to industries within the state on competitive terms. 

 “We all know that Kaduna used to be a hub when it comes to industries. It is our hope that this MoU signing will help provide the gas needed for some of those industries to come back to life,” Kyari was quoted.

There is no better way of making cheaper and cleaner energy than delivering gas into the domestic market.

 He said the Corporation is committed to the commercialization of Nigeria’s abundant natural gas resources to support balanced economic growth and job creation across the country, stressing that as the world transits to low carbon energy, the nation’s huge gas resources will continue to be an important source of clean energy for today and the future.

“There is no better way of making cheaper and cleaner energy than delivering gas into the domestic market,” he declared.

The NNPC helmsman further said the Corporation will continue to engage with stakeholders and partners to secure early markets and ensure that the economic benefits of the AKK gas pipeline were maximized.

“NNPC is leading this coordinated effort with State Governments and private sector investors to develop a demand framework for immediate and long-term gas supply solutions ahead of the completion of the AKK gas pipeline project,” he noted.

The GMD also expressed gratitude to the Kaduna Government for hosting NNPC’s facilities such as the Refinery complex, the Depot, the ongoing AKK gas pipeline and Independent Power Plant projects (IPPs). 

Responding, Governor Nasir el-Rufai expressed the State Government’s delight with the prospect of having an additional energy source to power businesses in the state.

“We wholeheartedly welcome this project. Gas provides a cost-effective option for powering factories, homes and vehicles. For the Kaduna State Government, this project is a welcome boost to our investment and job creation strategy. It will create jobs and provide skills for artisans who will work on the gas pipelines and associated infrastructure. Beyond that, this project will power the industries that have responded with enthusiasm to our investment promotion campaign,” the Governor said.

He thanked Kyari and the Gas Aggregation Company for the gas utilization and expansion initiative and zeal displayed to deliver the project.

 “Let there be no doubt that the Kaduna State Government is committed to this MoU and the realisation of its goals in the interest of the people of Kaduna State,” he concluded.

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