NNPC to boost economy with $4bn gas projects
Nigeria is being positioned as a leading gas-powered economy through the construction of three key gas projects with a combined worth of about $4.15bn, the Federal Government announced on Thursday.
It said the projects, being handled by the Nigerian National Petroleum Company Limited, include the Ajaokuta-Kaduna-Kano Gas Pipeline Project; Obiafu-Obrikom-Oben Gas Pipeline Project, popularly called OB3 gas project; and the Assa North-Ohaji South gas project, also known as ANOH project.
The Permanent Secretary, Federal Ministry of Petroleum Resources, Nicholas Ella, disclosed this in Abuja during an interactive session with employees of the ministry.
He said, “Under the Decade of Gas initiative, we significantly expanded gas infrastructure, including the AKK Gas Pipeline Project, the OB3 Gas Pipeline Project, and the ANOH gas project being undertaken by the NNPC Ltd.
“These projects are geared towards ensuring an efficient and widespread distribution of gas, positioning Nigeria as a leading gas-powered economy.”
Industry data showed that the ANOH project is worth $650m. This is after a cost optimisation program brought the initial budget of $700m down. The project is not operational yet, with the first gas expected in the third quarter of 2024.
For the AKK gas pipeline project, the total cost is estimated at around $2.8bn. The pipeline’s value is not just about construction.
It is expected to bring significant economic benefits to Nigeria by delivering gas to power plants, increasing electricity generation, supporting industrial growth in Northern Nigeria and creating jobs.
The $700m Obiafu-Obrikom-Oben gas pipeline project, popularly called OB3, started sometime in 2016 and is also known as the East-West Pipeline.
It connects the Obiafu-Obrikom gas plant near Omuku, Rivers State, to Oben, Edo State and is to transport over two billion standard cubic feet of gas per day.
Speaking further on gas infrastructure at the meeting, the permanent secretary said, “The President places a high premium on gas infrastructure development and supply. He demonstrated this with the launch of the Decade of Gas programme, ensuring Nigeria expands the supply and distribution of gas as the major source of energy.
“Many states of the federation are latching onto the Federal Government’s gas expansion programme. We are vigorously driving gas expansion to every nook and cranny of the country with the National Gas Expansion Programme.”
Ella also stated that the ministry would focus on diversifying the country’s energy mix by investing in renewable energy projects, and hydrogen development and enhancing the regulatory framework to attract private investments.
“Focusing on sustainable energy, the ministry has taken significant steps in developing a hydrogen policy to diversify Nigeria’s energy mix and contribute to global efforts in reducing carbon emissions.
“This policy framework aims to establish hydrogen as a viable alternative energy source, leveraging our existing gas infrastructure to produce green hydrogen,” he stated.
The told staff of his ministry that “to understand the enormity and urgency of the tasks before us, we have to appreciate the vast energy needs of Nigerians to power homes and industries.”
He added, “Therefore, I would like to seize this opportunity to appeal to all members of staff of this great ministry to brace up for the huge responsibilities placed on our shoulders as civil servants, which, as we all know, is the engine that drives and sustains development in any society.
“I enjoin all of us, junior, mid-level and senior cadres in the ministry, to roll up our sleeves and join the Ministers of State who have been tasked by President Bola Tinubu to deliver on his Renewed Hope Agenda.”
