Tag Archives: #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

NNPC Produces 218.37 billion Cubic Feet (BCF) of Natural Gas in March Alone

The Nigerian National Petroleum Corporation (NNPC) has said that 218.37billion Cubic Feet (BCF) of natural gas was produced in March 2020, translating to an average daily production of 7493.65Million Standard Cubic Feet per Day (mmscfd).

This was contained in NNPC Monthly Financial and Operations Report for March, 2020, a release by the corporation’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, stated,
The release said 3,119.89BCF of gas was produced for the period March 2019 to March 2020, representing an average daily production of 7,912.05mmscfd during the period.

It explained that period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.37 per cent, 21.67 per cent and 8.95 per cent, respectively, to the total national gas production.

Out of the 218.37BCF of gas supplied in March 2020, according to the report, 120.73BCF of gas was commercialized, consisting of 33.45BCF and 87.28BCF for the domestic and export market respectively, translating to 1,235.56mmscfd of gas to the domestic market and 3,817.40mmscfd of gas supplied to the export market for the month.

The report said 55.63% of the average daily gas produced was commercialized, while the balance of 44.37% was re-injected, used as Upstream fuel gas or flared.

Gas flare rate was 9.08 per cent for the month under review i.e. 679.54mmscfd, compared with average gas flare rate of 8.43 per cent i.e. 666.90mmscfd for March 2019 to March 2020.

During the month under review, the report also announced a trading deficit of ₦9.53billion for March 2020 compared to the ₦3.95billion surplus posted in February 2020.

The report declared that the over 300 per cent decline in March 2020 earnings was due primarily to the huge decrease of 181 per cent in the National Oil Company’s Upstream Subsidiary, Nigerian Petroleum Development Company’s (NPDC) due to the decline in crude oil prices precipitated by the Coronavirus-induced global slowdown which it stated led to reduced exports and dwindling world oil consumption; combined with deficits posted by the refineries, among others.

The NNPC MFOR indicated a total crude oil & gas export sale of $256.19million in March 2020 which decreased by 30.89 per cent, compared to last month’s. Of the total sales, crude oil export sales contributed $184.59million (72.05 per cent) of the dollar transactions compared with $281.14million contribution in the previous month; while the export gas sales amounted to $71.60million in the month.

The March 2019 to March 2020 crude oil and gas transactions indicated that crude oil & gas worth $4.95billion was exported.

In the Downstream, to ensure continuous availability of Premium Motor Spirit (PMS) otherwise called petrol, and effective distribution of the product across the country, 1.73billion litres of PMS, translating to 59.72mn liters/day were supplied for the month.

The corporation stated that it had continued to diligently monitor the daily stock of PMS to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.

Within the period under review, 19 pipeline points were vandalized representing about 47 per cent decrease from the 32 points recorded in February 2020. Atlas Cove-Mosimi accounted for 53 per cent, while Mosimi-Ibadan recorded 21 per cent and Suleja-Minna accounted for the remaining 26 per cent.

The report assured that NNPC, in collaboration with the local communities and other stakeholders, continuously strived to reduce the menace to the barest level.

The March 2020 MFO report of the NNPC is the 56th edition in the series that began in 2016.

The corporation carried its adherence to transparency and accountability a notch higher last week, 19th March, 2020 when it published its 2018 Audited Financial Report, a move that has received accolades from transparency watchdogs locally and internationally, in addition to endorsement by many Nigerians who encouraged other government agencies to follow suit.

The statement was signed by Dr. Kennie Obateru, the Group General Manager, Group Public Affairs Division, Nigerian National Petroleum Corporation, NNPC Towers, Abuja on the 24th June, 2020.