NNPC, Kaduna Govt Sign MoU on Gas Utilisation, Expansion

Emmanuel Addeh

The Nigerian National Petroleum Corporation (NNPC) and the Kaduna State Government have signed a Memorandum of Understanding (MoU) for utilisation and expansion of gas supply in the state.

Speaking at the MoU Execution Ceremony, the Group Managing Director of NNPC, Mallam Mele Kyari, described the moment as yet another watershed in the federal government’s “Decade of Gas” initiative, which is aimed at utilising the nation’s abundant gas resources to power the nation’s economy.

A statement by the Spokesman of the corporation, Mr Garba Muhammad, in Abuja said that this will be achieved through a number of 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 when it comes to industries. It is our 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 commercialisation 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 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 the economic benefits of the AKK gas pipeline are maximised.

“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).