NNPCL sets fourth quarter deadline to complete Ajaokuta/Kaduna gas pipeline project

BY FESTUS OKOROMADU, ABUJA

The Nigerian National Petroleum Company Limited said it is working assiduously to ensure the timely delivery of major gas pipeline infrastructure projects in the country.

To this end, the Group Chief Executive Officer of NNPCL, Mele Kyari has given the assurance that the on-going Ajaokuta-Kaduna-Kano gas pipeline project will be completed in the fourth quarter of this year.

Kyari stated this while delivering a paper at the 2023 edition of the annual Oloibiri Lecture Series and Energy Forum organized by the Society of Petroleum Engineers in Abuja.

Speaking on this year’s theme: “Effective Gas Resources Utilization: A Lever for Enhancing Energy Security and Achieving Net-Zero Emission Goals,” Kyari said the NNPCL is committed to expanding the country’s gas pipeline infrastructure capacity.

“Nigeria’s domestic gas infrastructure network has an existing capacity to transport about 6.9 Billion Standard Cubic Feet (BCF) of gas to support power generation and gas-based industries,” he said.

Kyari said with the AKK gas pipeline coming on stream by the fourth quarter of the year with additional 2.2Bfc, it will bring total domestic transmission capacity to 9.1Bfc.

“The huge investment in gas infrastructure is hinged on our growing natural gas reserves, thus supporting our nation’s aspiration to create Africa’s biggest industrial hub powered by low-carbon energy.

“NNPCL is taking advantage of Nigeria’s huge natural gas reserves of over 200 Trillion Cubic Feet (TCF) with a potential to grow to 600 Trillion Cubic Feet (TCF) as more investment is expected due to the recent resolution of the Production Sharing Contract disputes with partners.

“This significant reserve will serve as a low-carbon energy alternative that will support growth in the power and industrial sectors, address energy poverty, reduce carbon-footprint and create more employment opportunities,” he stated.

Kyari said the NNPCL is playing a leading role in the realisation of the Federal Government’s National Gas Expansion Programme, which seeks to deepen natural gas utilization as an alternative transportation fuel, and an important feedstock for the development of gas-based industries.

Other notable infrastructure projects currently under execution by the NNPCL include the Nigeria- Morocco and the Trans-Sahara Gas Pipelines that will connect West African countries to deliver natural gas to the international markets.

The on-going NLNG Train 7, which is basically for the gas export market, will expand Nigeria’s LNG production capacity from 22mpta to about 30 million tons per annum (30 MTPA).

The NNPCL boss said the company is deploying carbon-reduction initiatives to gradually decarbonise its operations and improve compliance with global emission reduction as a sustainability strategy.

“We will continue to further deepen collaboration amongst all the relevant stakeholders; government security agencies, host communities and others to enhance our energy security. This will require provision of adequate and timely investments to build resilient energy systems capable of delivering energy to support socio-economic development in a sustainable manner.

“NNPCL will deepen relationships with the industry, governments, research institutions and the academia to strengthen its renewable energy division to pursue commercially viable new energy ventures in line with Nigeria’s net-zero aspiration by 2060”

“As part of our sustainability strategy, NNPC is deploying carbon-reduction initiatives to gradually decarbonise our operations and improve our compliances with global emission reduction.

“All of these cannot be achieved if we do not have security of our operations. We will continue to further deepen collaboration amongst all the relevant stakeholders; government security agencies, host communities and others to enhance energy security.

“NNPCL will deepen relationships with the industry, governments, research institutions and the academia to strengthen its renewable energy division to pursue commercially viable new energy ventures in line with Nigeria’s net-zero aspiration by 2060,” Kyari added.

In his address, the Permanent Secretary, Ministry of Petroleum Resources, Gabriel Aduda, noted that despite the push back from the international community, fossil fuel would continue to play a dominant role in the energy sector for the foreseeable future.

Aduda explained that the enactment of the Petroleum Industry Act 2021 was a major achievement in the industry, adding that the PIA has led to the creation of regulatory frameworks with clear-cut mandates for the growth and development of the oil and gas sector.

“If properly implemented, the PIA 2021 would represent the gold standard of natural resource management, with clear and separate roles for the subsectors of the industry; the emergence of a commercially-oriented and profit-driven national petroleum company; the codification of transparency, good governance, and accountability in the administration of oil and gas; the economic and social development of host communities; environmental remediation; and a business environment conducive for oil and gas operations to thrive.”

He held that “the efficient use of gas resources is a key component of achieving both energy security and reducing emissions. Gas is a cleaner burning fossil fuel than oil or coal, and it can play a significant role in reducing greenhouse gas emissions.

“In addition, the utilization of gas can help to diversify Nigeria’s energy mix and reduce the country’s dependence on oil,”Aduda stressed.