Nigeria’s domestic gas penetration aspirations have received a major boost, as the Nigerian National Petroleum Corporation (NNPC) and the Kaduna State Government have signed a Memorandum of Understanding (MoU) for utilization and expansion of gas supply in the state.
Speaking at the MoU Execution Ceremony which was held Thursday at the Sir Kashim Ibrahim House in Kaduna, the Group Managing Director of NNPC, Mallam Mele Kyari, described the moment yet another watershed in the Federal Government’s Decade of Gas initiative which is aimed at utilizing the nation’s abundant gas resources to power the nation’s economy through several strategic gas expansion projects such as the ongoing OB3 and Ajaokuta-Kaduna-Kano Gas Pipeline Projects.
The event which was facilitated by the Gas Aggregation Company of Nigeria (GACN) would ensure long-term involvement and support of Kaduna State Government and key gas sector players such as the Nigerian Gas Company (NGC), the Nigerian Gas Marketing Company (NGMC), and virtual pipeline companies to provide gas supply assurance to industries within the state on competitive terms.
“We all know that Kaduna used to be a hub for industries. We hope that this MoU signing will help provide the gas needed for some of those industries to come back to life,” Kyari stated.
He said the Corporation was 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 would 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 stated that the Corporation would continue to engage with stakeholders and partners to secure early market and ensure that we maximized the economic benefits of the AKK gas pipeline.
“NNPC is leading this coordinated effort with State Governments and private sector investors to develop 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 Nasiru el-Rufai said Kaduna State Government was delighted 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,” Governor el-Rufai stated.
He particularly thanked the GMD NNPC and the Gas Aggregation Company of Nigeria 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 realization of its goals in the interest of the people of Kaduna State,” Governor el-Rufai concluded.
The MoU was signed by Mallam Kyari on behalf of the Corporation while the Kaduna State Governor, Mallam Nasiru el-Rufai signed on behalf of the State Government.