Category Archives: Oil & Gas

$2.8 Billion Ajaokuta, Kaduna Kano (AKK) PIPELINE PROJECT: BUHARI STRIKES AGAIN! – Presidency

Something good is already happening. Something marvelous is in store, as Federal Government kick starts the $2.8 billion Ajaokuta – Kaduna – Kano (AKK) National Gas Pipeline Project next Tuesday. It’s another humongous signature milestone by President Muhammadu Buhari, which will leave his footprints inexorably on the sands of time.

Roads, Bridges, Rail, Airports, Social Investment, and many others. Buhari is doing great things, which will pedestal him in the pantheon of great Nigerian leaders. And now, he has struck again. He is kicking off the AKK pipeline project, which will carry gas between the southern and northern parts of the country. The project will eventually extend to North Africa.

The Nigerian National Petroleum Corporation (NNPC) initially announced tenders for the project in July 2013. A project proposal was submitted to the Infrastructure Concession Regulatory Commission in June 2017, and the Federal Executive Council granted approval in December 2017. I tell you, this President Buhari has the heart of a lion.

If the intention was to continue to run the NNPC as an automated teller machine (ATM), as we have seen before in this country, will such staggering project ever be approved, not to talk of taking off? And some people are still asking for CHANGE, when it is right before their very eyes.

The 614 kilometers-long National Gas Pipeline is Phase One of the Trans-Nigeria Gas Pipeline (TNGP) project, to be done on build and transfer Public Private Partnership (PPP). It will transport 3,500 Million metric standard cubic feet per day of dehydrated gas from several gas gathering projects located in southern Nigeria.

The project will be in three phases. Phase One is 200 kilometers-long, between Ajaokuta and Abuja, at a projected cost of $855 Million.

Phase Two is 193 kilometers-long, between Abuja and Kaduna, to cost an estimated $835 million, while Phase Three is 221 kilometers-long, between Kaduna and Kano, at an approximate cost of $1.2 billion.
The project will eventually reach North Africa in subsequent phases.

What will AKK pipeline project do for Nigeria? Great and wonderful things. It will create steady and guaranteed gas supply network between the North and South, and will 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.

Nigeria is ranked the 7th most endowed natural gas country in the world. She 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), 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, but is also more expensive to prospect.
One big advantage the average Nigerian can look forward to is the evolvement of compressed natural gas (CNG), which is still at pilot stage in the country.

While presenting his performance report to the Federal Executive Council recently, Minister of State for Petroleum, Timipre Sylva, spoke extensively about CNG, and what it can do for Nigeria as an alternative to petrol.
He listed the challenges of the oil and gas sector to include; under-recovery, crude theft, insecurity, high cost of production, very low LPG penetration, refineries shutdown, long contracting cycle, among others.

Sylva stressed that the oil and gas sector remains critical to the Nigerian economy, even as we strive to diversify. He identified CNG and LPG penetration as priority.
Said the Minister: “The switch to CNG will help reduce the burden of petrol subsidy on the finances of the country, and government should encourage Nigerians to use CNG as fuel for transportation.”

CNG began as a pilot project in the country in 2006, but target for conversion workshops was not met till 2015. About 4,000 vehicles run on CNG in Benin, Edo State, and it’s about 50% cheaper than petrol.
Vehicles running on CNG, statistics show, save about N1,143 daily, compared with petrol. This amounts to over N30, 000 monthly. The cost of converting the car can thus be recovered within six months.

Gas is cleaner energy, cheaper than petrol, and more friendly to the environment. Global warming will, therefore, be slowed down.

More than 175,000 vehicles run on CNG in America today, and 23 million worldwide. Nigeria will join the number, and boost productivity.

The Buhari signature projects will remain landmarks in Nigeria. Help me count them: Roads, rail, bridges, airports, agriculture, AKK… and many more.

Surely, we will always remember this President for good.

By: Adesina is Special Adviser to President Muhammadu Buhari on Media and Publicity

Breaking: NNPC Discovers Crude Oil In Kanam and Wase LGs of Plateau State

The Nigerian National Petroleum Corporation (NNPC), said on Saturday 20th June, 2020, that it is exploring for oil and gas in Wase and Kanam Local Government Areas of Plateau State. The NNPC said Wase and Kanam, which are parts of the Upper and Middle Benue Trough. have oil and gas prospects capable of contributing to the economic growth of the country.

The exploration exercise was disclosed on Saturday when the Management of the organisation paid Governor Simon Bako Lalong a courtesy visit at Government House, Little Rayfield, Jos. The Group Managing Director (GMD) of the NNPC, Mele Kyari through the Group General Manager (GGM), Frontiers Exploration Services, Abdullahi Bomai, while highlighting on the development, stressed that NNPC has acquired and used modern equipment which has resulted to the identification of hydrocarbon materials in the Upper and Middle Benue Trough.

Mr. Bomai, added that the NNPC has identified additional oil and gas province known as the Kolmani discovery in addition to those of the Niger-Delta as well as increase the worth of the Benue Trough with a billion barrels of oil reserves among others. While emphasising on the readiness of Government to cooperate in the process, Kyari also assured that the NNPC will engage people of Plateau, both skilled, semi-skilled and unskilled workers in different operations in the two identified LGAs.

Commenting on the development, the Governor of Plateau State who was represented by his Deputy, Professor Sonni Tyoden, commended the NNPC for such untiring efforts, noting that under the leadership of Mele Kyari, the organisation had done exceedingly well in identifying and unraveling geological deposits in the Upper and Middle Benue Trough.

Crude Oil Prices Fall As COVID-19 cases pick up in China, US

Daily Watch Press, gathered that oil prices fell on Wednesday as investors worried about fuel demand due to fresh outbreaks of COVID-19, though prices drew some support after US stocks of diesel fuel fell for the first time in weeks and US oil production dropped sharply.

Brent crude was down 31 cents, or 0.8 per cent, at $40.65 a barrel at 10:50 EST (1450 GMT). US West Texas Intermediate (WTI) fell 43 cents, or 1.1 per cent, to $37.95 a barrel.

US crude inventories rose by 1.2 million barrels, but distillate stockpiles, which include diesel and heating oil, fell by 1.4 million barrels following weeks of significant builds as refiners continued to blend jet fuel into their distillate pool, EIA data showed on Wednesday.

“That snapped a 10-week streak of builds, and the market needed that,” said Bob Yawger, director of energy futures at Mizuho in New York.

US oil production fell last week to 10.5 million barrels per day, lowest since March 2018. Some of that was due to Storm Cristobal, which shut more than one-third of US offshore output.

The World Health Organization said it was moving to update its guidelines after results showed the corticosteroid medication dexamethasone cut death rates by about a third among the most severely ill COVID-19 patients.

However, the virus is spreading in parts of the United States, while scores of flights were cancelled and schools were shut in Beijing to head off a new virus outbreak in the Chinese city.

“We think the oil market is not currently pricing in a significant probability of either second waves of coronavirus cases in key consumers and the associated lockdowns, or anything less than a rapid return to economic business-as-usual,” Standard Chartered analysts said.

Weak economic activity is still weighing on demand for crude. US fuel demand, as measured by product supplied, is down 20 per cent over the past four weeks, compared with the year-ago period, EIA said.