Energy
Buhari flags off $2.8 billion gas pipeline project, biggest in Nigeria’s history
The project will boost domestic gas consumption, power generation, and industrialization.
President Muhammadu Buhari will be making history as he flags off the construction of the $2.8 billion 614km Ajaokuta-Kaduna-Kano (AKK) natural gas pipeline, the single biggest gas pipeline project in Nigeria’s history, by Tuesday June 30, 2020, in Ajaokuta (Kogi State) and Rigachikun (Kaduna State).
Presidential Flag-off of the Construction Phase of the #AKK Gas Pipeline Project Holds Tuesday, 30th June 2020 in Ajaokuta (Kogi St) & Rigachikun (Kaduna St). The project will boost domestic gas consumption, power generation & industrialisation. @MBuhari @FemAdesina @BashirAhmaad pic.twitter.com/3LZou37EdK
— NNPC Group (@NNPCgroup) June 27, 2020
The project, which is taking off after months of discussions in and out of the country, will boost domestic gas consumption, power generation, and industrialization.
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The AKK pipeline project, which will carry gas between the southern and northern parts of the country, will eventually extend to North Africa.
The Nigerian National Petroleum Corporation (NNPC) initially announced tenders for this project in July 2013. A project proposal was submitted to the Infrastructure Concession Regulatory Commission (ICRC) in June 2017, and the Federal Executive Council subsequently granted approval in December 2017.
The 614 kilometers-long natural gas pipeline is Phase One of the Trans-Nigeria Gas Pipeline (TNGP) project, to be done on a build-and-transfer Public Private Partnership (PPP) basis. It will transport 3,500 million metric standard cubic feet per day of dehydrated gas from several gas gathering projects located in southern Nigeria.
READ ALSO: NNPC mulls extension of gas pipeline to Algeria, Morocco
The project will be in three phases:
- The first phase is 200 kilometers long and is between Ajaokuta and Abuja, at a projected cost of $855 million.
- The second phase is 193 kilometers long, between Abuja and Kaduna. It is estimated to cost $835 million.
- The third phase is 221 kilometers-long, between Kaduna and Kano, at a projected cost of $1.2 billion.
It will eventually reach North Africa in subsequent phases.
The AKK gas pipeline project will create steady and guaranteed gas supply network between the Northern and Southern part of Nigeria, and enhance power generation capacity. The industrial sector will be strengthened, local usage of gas will be promoted and increased, and the country’s revenue generation boosted through export of natural gas.
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Nigeria, currently ranked the 7th most endowed natural gas country in the world, sits on about 180 trillion cubic feet of natural gas deposits, which can be utilized as gas to power, gas to petrochemicals, liquefied natural gas (LNG), liquefied petroleum gas (LPG), and compressed natural gas (CNG), among others.
Over the years, Nigeria has exploited its oil resources more, to the detriment of gas, which incidentally fetches more revenue although more expensive to prospect.
One big advantage the average Nigerian can look forward to is the evolution of compressed natural gas (CNG), which is still at pilot stage in the country.
Energy
FG approves new board for NLNG, BGT
The change was necessary because the current board members had been in office since 2005.
Federal Government has approved the newly reconstituted boards of Nigeria Liquified Natural Gas(NLNG) and Bonny Gas Transport Limited (BGT).
This was disclosed in a statement issued by the Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja on Monday.
According to him, the new board, which was approved by President Muhammadu Buhari, was necessary because the current board members had been in office since 2005.
He disclosed that the new board members for the NLNG include Dr Edmund Daukoru as Chaiman, Mr Henry lkem-Obih as a Member and Dr Rabiu Sulaiman as a Member.
Other Members include the Group Managing Director of the Nigerian National Corporation (NNPC), Malam Mele Kyari and the Permanent Secretary, Ministry of Petroleum Resources, Mr Bitrus Nabasu.
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He also said that Daukoru was also approved as the President of the Board of BGT while Doyin Akinyanju and Abdul Abba are members.
The minister noted that Kyari and Nabasu were also members of the board.
“I will like to use this opportunity to thank the chairman and other outgoing board members of NLNG for steering the companies to record successes, particularly the Train 7 FID.
“l wish the exiting members good health and more successes in their future endeavors.
“To the incoming members of the board, I congratulate you on this appointment; your selection is based on your experience, integrity and expertise.
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“I, therefore,urge you to bring all these to bear in the discharge of your responsibilities in line with the progressive agenda of Mr President,” he said.
The News Agency of Nigeria(NAN) reports that some of the new board members had worked in the industry in the past.
Daukoru was a former Minister of State for Energy and also Secretary General of the Organisation of the Petroleum Exporting Countries in 2006.
He became the Amayanabo, or traditional ruler, of Nembe Kingdom in 2008.
Also, Ikem-Obih was a former Chief Operating Officer, Downstream of the NNPC and Rabiu a former Group Executive Director at the corporation.
Energy
NNPC spends N535.9 billion on subsidy, FAAC in Q1 2020
Petrol subsidy gulped N101.65bn in the first three months of the year.
The Nigerian National Petroleum Corporation (NNPC) spent over N535.9 billion on subsidy and Federation Account Allocation Committee in the first quarter of 2020.
This was disclosed by the corporation in its Monthly Financial and Operations March 2020 report.
The report revealed that while the petrol subsidy gulped N101.65bn in the first three months of the year, the sum of N434.25 billion was paid to FAAC within the same period.
The national oil firm described the subsidy spending as under-recovery. This means that Nigeria is incurring an additional cost in subsidizing the price of petrol to make sure it falls within the regulated price of N143.80 per litre, even though the real market price is above this regulated rate.
READ ALSO: NNPC’s subsidiary to ship crude again after years of inactivity
It had consistently argued that only the National Assembly was empowered to approve petrol subsidy, despite the fact that NNPC’s monthly under-recoveries were due to subsidy on petrol.
According to the report, while the corporation spent N43.31bn as subsidy on petrol in January 2020, in February, it incurred N20.68bn as under-recovery, and N37.66 billion in March as subsidy.
However, subsidy was halted in March 2020 by the Petroleum Products Pricing Regulatory Agency after the crash in global crude oil prices.
The development, according to the PPPRA, led to the end of petrol subsidy, as the agency stated that petrol price would be adjusted in accordance to global oil prices.
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The PPPRA has adjusted petrol price about three times since after the first adjustment in March this year.
The NNPC report further stated that the corporation paid N434.25bn to the Federation Account Allocation Committee during the quarter under review.
It stated that in January, a total of N138.57bn was remitted to FAAC, while the committee received N148.53bn from the corporation in February 2020.
The NNPC said it paid N147.15bn to FAAC in March this year.
Energy
COVID-19: Minister of Power instructs contractors back to site as lockdown eases
The power minister gave the directive during an inspection visit to the new Gagarawa 2.
The Minister of Power, Sale Mamman, has asked all contractors handling power projects across the country to return back to project sites following the gradual relaxation of the lockdown by the Federal Government, due to the coronavirus pandemic.
The directive from the minister was contained in a press statement by the Special Adviser to the Minister on Media and Communications, Aaron Artimas, on Sunday, July 12, 2020, in Abuja.
The power minister gave the directive during an inspection visit to the new Gagarawa 2 by 60 Mega Volt Amp (MVA) 132/33 Kilo Volt Sub-station being constructed by the Transmission Company of Nigeria (TCN) in Jigawa.
Mamman, lamented the negative impact of the coronavirus pandemic on the power sector, pointing out that the sector was among the worst affected with the entire value chain directly or indirectly counting losses.
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The Minister in the statement said, ‘’I can tell you that the impact of the pandemic is huge in the power sector as a real service provider. We, however, have joined the government effort to restart the economy with the easing of the lockdown and opening of the interstate road.’’
“I direct all contractors handling power projects to return to sites and work assiduously to recover from the losses recorded during this lockdown,” he said.
Mamman said the Gagarawa Sub-station project would boost power supply in over 7 local government areas including an industrial area.
On his part, the Jigawa State Governor, Abubakar Badaru, who was part of the inspection team, commended the power minister’s effort at ensuring completion of these projects that have been on for over 20 years.
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The News agency of Nigeria (NAN), reports that the sub-station is 99% completed and has been energized.
The acting Managing Director of TCN, Suleiman Abdulaziz, who was also part of the inspection asked for speedy completion of similar sub-station across the country.
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Charles
June 28, 2020 at 6:20 pm
Is the gas pipeline project only for the Northern Region, or will there be an extension later to the South. For some reason, Buhari is quick to sign off projects that enhance the development of the North while preaching one Nigeria. Take the railway line construction….etc, for example.
Md
June 28, 2020 at 9:29 pm
This will be the greatest achievement of this administration, most especially for the northers, cause this project will bring more company and industries in the region part of the country. And will surely create wealth and jobs for the peopel in the regoin.