Malam Mele Kyari, Group Managing Director of NNPC (seated right) and Governor (Malam) Nasir el-Rufai of Kaduna State, Signing the Memorandum of Understanding for Gas Supply in Sir Kashim Ibrahim House, in Kaduna Photo: NNPC

NNPC, Kaduna Government sign MoU on gas utilisation, expansion

*The Nigerian National Petroleum Corporation assures stakeholders and consumers that the state oil firm is committed to commercialisation of the country’s abundant natural gas resources to support balanced economic growth, revamp industries, and create jobs in the country

Alexander Davis | ConsumerConnect

Domestic gas penetration aspirations have received a major boost in the country as the Nigerian National Petroleum Corporation (NNPC) and Kaduna State Government (KDSG) have signed a Memorandum of Understanding (MoU) for utilisation and expansion of gas supply in the state.

Mr. Garba Deen Muhammad, Group General Manager, Group Public Affairs Division of NNPC, in a statement issued Thursday, August 26, 2021, in Abuja, FCT, said Malam Mele Kyari, Group Managing Director (GMD) of NNPC, speaking at the MoU Execution Ceremony held Thursday in the Sir Kashim Ibrahim House, in Kaduna, described the moment as yet another watershed in the Federal Government’s Decade of Gas initiative.

The NNPC GMD stated that the initiative is aimed at utilising the Nigeria’s abundant gas resources to power the country’s economy through a number of strategic gas expansion projects.

Such project, the statement noted, include the ongoing OB3 and Ajaokuta-Kaduna-Kano Gas Pipeline Projects.

The state oil firm said the event, which was facilitated by the Gas Aggregation Company of Nigeria (GACN), would ensure long-term involvement and support of Kaduna State Government as well as other key gas sector players, such as the Nigerian Gas Company (NGC), Nigerian Gas Marketing Company (NGMC), and virtual pipeline companies to provide gas supply assurance to industries within the state on competitive terms.

Malam Kyari said: “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.”

He further noted that the Corporation is committed to the commercialisation of Nigeria’s abundant natural gas resources to support balanced economic growth and job creation across the country.

As the world transits to low carbon energy, the country’s huge gas resources would continue to be an important source of clean energy for today and the future, said Kyari.

The GMD stated: “There is no better way of making cheaper and cleaner energy than delivering gas into the domestic market.”

The Corporation, he also noted, will 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,” said he.

Kyari as well expressed gratitude to the Kaduna State Government for hosting NNPC’s facilities, such as the Refinery Complex, the Depot, the ongoing AKK gas pipeline, and Independent Power Plant Projects (IPPs).

Governor (Malam) Nasiru el-Rufai in his response said Kaduna Government was delighted with the prospect of having an additional energy source to power businesses in the state.

El-Rufai stated: “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.”

The Kaduna State Governor particularly thanked the NNPC GMD and the Gas Aggregation Company of Nigeria for the gas utilisation and expansion initiative, and the zeal displayed in delivering the project.

He added: “Let there be no doubt that the Kaduna State Government is committed to this MoU and the realisation of its goals in the interest of the people of Kaduna State.”

Malam Kyari signed the MoU on behalf of the NNPC, while Governor el-Rufai signed on behalf of the Kaduna State Government.

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