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President Buhari watches Bello flag-off Ajaokuta gas pipeline works through video-conferencing

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President Muhammadu Buhari on Tuesday affirmed the Nigerian government’s to ensure timely delivery of the landmark Ajaokuta-Kaduna-Kano Gas (AKK) pipeline project within budgetary allocation and specifications.

Speaking at the virtual flag-off ceremony of the project at the Ajaokuta, Kogi State and Rigachikun, Kaduna State camp sites simultaneously, President Buhari said the project was very dear to the people of Nigeria and must succeed.

The President, therefore, directed the NNPC and partners to remain focused, noting that the AKK project is part of the delivery of the present administration’s Next Level Agenda for sustainable development, enhancement of economic prosperity and increase of the country’s infrastructure assets.

Governors Yahaya Bello of Kogi State and Nasir El-Rufai of Kaduna physically flagged off the commencement of works at Ajaokuta and Rigachikun sites, while the President watched remotely via video-conference from the Council Chamber in Abuja.

President Buhari said: ‘‘we promised the Nation that we will expand the critical gas infrastructure in the country to promote the use of gas in the domestic market.

‘‘These include the Escravos to Lagos Pipeline System – 2 (ELPS-2), Obiafu to Obrikom (OB3) pipeline and AKK.

‘‘These projects are fundamental to our desire to industrialize and energize the entrepreneurial spirit that is ever present in our population.’’

Enumerating the benefits of the project, billed to be completed in two years, the President said it will provide gas for generation of power and for gas-based industries which would facilitate the development of new industries.

It will also ensure the revival of moribund industries along transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and Kano State, he said, adding that the cascading effect and impact of the AKK, when operational, will be immeasurable.

His words: ‘‘It has significant job creation potential both direct and indirect, while fostering the development and utilization of local skills and manpower, technology transfer and promotion of local manufacturing.’’

President Buhari announced that Nigeria had learnt invaluable lessons from the global COVID-19 pandemic and some oil rich countries that have used their crude as a pathway to economic and industrial diversification.

On COVID-19, the President said the pandemic had further underscored the drive of his administration for export substitution initiatives and projects that promote local manufacturing.

On diversification, the President said: ‘‘Gulf countries that have similar levels of gas reserves as Nigeria, have a strategy centered around gas-industrialization as their foundation towards export diversification. This has to be our guiding principle as we seek to attract investment and create opportunities for our people.’’

The President also used the occasion to challenge the private sector to lead the charge in maximising the nation’s gas resources.

According to him the private sector can create a petrochemical hub that will resurrect the manufacturing industry and put the nation on the path to increased self-sufficiency.

‘‘As the world evolves, we owe our people the responsibility to prepare them for what the future holds. We, therefore, must be bold and fearless and can no longer be incremental in our approach.

‘‘Time is short, and our people’s zeal is strong and palpable. Infrastructure development although long, tedious and complex remains a cardinal objective of our Administration’s drive towards ensuring a stable, sustainable and more prosperous future for our citizenry.

‘‘Today marks an important chapter in the history of our great Nation. It marks the day when our domestic natural gas pipeline networks; from Obiafu in Rivers State, Escravos in Delta State and Lekki in Lagos State, are being connected through Kaduna to Kano States thereby enhancing national energy security, creating balanced development, and further integrating our nation,’’ he said.

The President commended the Government of the People’s Republic of China; the financiers the Bank of China and SINOSURE; and the two EPC Contractors (Brentex/China Petroleum Pipeline Bureau-CPP Consortia and Oilserve/China First Highway Engineering Company-CFHEC Consortia) for their support to deliver the important project.

He also congratulated the Ministry of Petroleum Resources, NNPC and all relevant stakeholders on the historic and epoch-making occasion, commending the resilience of the team to deliver on the project despite the COVID-19 pandemic.

The President appealed to Governors of Kogi, Niger, Kaduna and Kano States as well as the Minister of the Federal Capital Territory to provide the enabling environment and support for the project.

In his remarks, Mallam Mele Kyari, Group Managing Director, NNPC, explained that the AKK gas pipeline project, which is part of the Trans-Nigeria gas pipeline project, involves the establishment of a connecting gas pipeline network that will integrate the Northern region of the country with the Niger Delta, Eastern and Western regions of the Country.

He said the EPC contract for the 614km AKK gas pipeline project was awarded at a total contract sum of US$2.592 billion to Messrs. Oilserv Plc/China First Highway Engineering Company (Oilserv/CFHEC Consortium) for the first segment covering 303km.

According to the GMD NNPC, Messrs. Brentex Petroleum Services/China Petroleum Pipeline Bureau (Brentex/CPP Consortium) got the contract for the second segment covering 311km under a debt-equity financing model with loan from Bank of China and SINOSURE, to be repaid through the pipeline transmission tariff and supported by a sovereign guarantee.

‘‘We are confident that the EPC contractors will deliver the project on time, within budget and to quality/specifications,’’ he said.

Kyari added that upon completion, the project would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW.
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Oil and Gas

NIES 2025: NLNG says energy security should be a priority

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The Nigeria Liquefied Gas on Friday called for energy security to be made a national priority through proactive measure in a manner that the infrastructure and critical assets are protected for the sustainable growth of the oil and gas industry.

Speaking at a panel session titled “Driving Cross-Continental Investments: Scaling Africa’s Energy Frontier” at the 8th Nigeria International Energy Summit (NIES), the Managing Director/Chief Executive Officer of NLNG, Philip Mshelbila stated that there were growing concerns over gas infrastructure security, stressing that while improvements have been recorded in securing oil assets, that gas infrastructure remains vulnerable, and without adequate protection which will lead to underperformance in the industry.

Mshelbina stated that NLNG was focused on boosting both domestic and regional energy access, adding that the company was making smaller-scale investments to retain more gas for local consumption. He noted that a major step in this direction was NLNG’s decision to domesticate 100% of its Liquefied Petroleum Gas (LPG) supply for the Nigerian market.

Beyond the domestic market, Mshelbila remarked that the Company was also working towards enhancing regional energy security. He revealed that, as part of the Train 7 project, the company was constructing a third jetty to support small-scale vessels in supplying gas across Africa’s coastal markets.

Additionally, he said the company was supporting the Federal Government of Nigeria (FGN) in connecting Bonny Island to the mainland to facilitate LPG trucking, thereby strengthening domestic gas distribution. This initiative is expected to boost West Africa’s energy distribution network, positioning NLNG as a key player in the region’s energy landscape, he noted.

Mshelbila also emphasised the need for clear and consistent regulatory frameworks to attract long-term investments.

Through proactive methane reduction, low-carbon innovations, and impactful social initiatives, Mshelbila remarked that NLNG’s commitment to local content and sustainability aligned with global energy transition priorities, stating that NLNG was building investor confidence and demonstrating long-term value.

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$200 billion required to be injected into development of gas infrastructure – NEITI

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The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, NEITI, Dr. Orji Ogbonnaya Orji has said, the sum of $200 billion is needed to be injected into Nigeria’s gas infrastructure for its development and maximization of the natural resources as the ninth largest gas producer in the world as number one in Africa.

He pointed this out in the 2021 – 2023 reports on Oil, Gas and Solid Minerals presented to the Public Accounts Committee chaired by Senator Aliyu Wadada Ahmed, saying the required infrastructure for maximization of gas resources in the country are not there.

He said, there was need for the injection of $20 billion yearly into gas infrastructure for a period of ten years for construction of gas pipelines along and across West African sub-region, and beyond which is a huge expenditure”, he said.

Orji said: “In Nigeria, what we need, is to invest in gas infrastructure to evacuate gas as our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.

A member of Senate Committee on Public Accounts, Senator Abdul Ningi asked, “what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission in 2023”, the NEITI boss said the Economic and Financial Crime Commission, EFCC , is already probing the agencies involved.

Senate panel were further irked by the submission in the NEITI’s report that less than 1% of solid minerals is remitted into Federal Government’s Consolidated Revenue Fund account.

Chairman of Senate Committee on Public Accounts, speaking on remittances of Solid Minerals into the Consolidated Revenue Fund decried the less than 1% contribution of proceeds from the sector on yearly basis.

Other members were unanimous that, NEITI’s report on solid minerals, is not reflective of what is going on in the solid mineral sector.

They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report excluding Nasarawa , Zamfara , Kebbi , Plateau, Bauchi etc .

Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.

“This definitely must not continue, there must be complete overhaul of the sector “, he said

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Niger Tanker Explosion: NUPENG urges government to repair roads, senditise citizens on danger of fuel scooping

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The national secretariat of the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, has urged the Federal Government to repair roads to avert tanker tragedies across the country.

NUPENG made the call in reaction to the recent tragic tanker explosion in Suleja, Niger State.

A statement jointly signed by Williams Akporeha and Olawale Afolabi, respectively, President and General Secretary stated that the union was “deeply saddened by the loss of lives, the destruction of properties, and the injuries sustained by many in this devastating incident.”

The statement, issued to newsmen in Abuja on Sunday, also appealed to the Federal Government to urgently address the poor condition of federal roads.

The statement read in part: “The Union takes this opportunity to urgently appeal to the Federal Government to repair bad roads to prevent such incidents and to intensify efforts in sensitising the public about the dangers of scooping fuel from petroleum truck accidents.

“Our thoughts and prayers are with the victims and their loved ones during this traumatic and challenging time.”

NUPENG further sppealed to the Federal Government to take urgent steps to repair federal roads which it noted were in bad shape.

It also tasked the Federal Government to mandate its relevant agencies to seize the initiative towards sensitising Nigerians on the danger of scooping fuel from scenes of petrol tanker accidents.

The statement further reads in part:”The Union takes this opportunity to urgently appeal to the Federal government to repazir bad roads to prevent such incidents and to intensify efforts in sensitizing the public about the dangers of scooping fuel from accidental situations of petroleum trucks on highways.

“As a responsible organization, NUPENG collaborates annually with relevant agencies, including the Federal Road Safety Corps, the Police, and State Traffic Management agencies, to train our drivers on road safety. The Union is committed to continuously training and retraining our members on best driving and safety practices.

“We stand in solidarity with the affected families and the entire Dikko community in Niger State. We commend the emergency responders who bravely extinguished the fire and rescued many injured victims.

“We urge all relevant authorities to provide the necessary support and medical care to those injured and to take measures to prevent future tragedies.

“May the souls of the departed rest in peace, and may their families find the strength to bear these irreparable losses.”

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