Emmanuel OchayiFederal Government Announces $4.15bn Gas Projects
Nigeria is on its way to becoming a leading gas-powered economy, thanks to three gas projects worth $4.15 billion. The Federal Government made this announcement on Thursday, highlighting the Nigerian National Petroleum Company Limited’s (NNPC) involvement in these projects.
The projects include; the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, the Obiafu-Obrikom-Oben (OB3) Gas Pipeline, and the Assa North-Ohaji South (ANOH) Gas Project.
NNPC Major Projects Underway
Nicholas Ella, Permanent Secretary of the Federal Ministry of Petroleum Resources, provided insights into these developments during an interactive session in Abuja.
“Under the Decade of Gas initiative, we significantly expanded gas infrastructure, including the AKK Gas Pipeline Project, the OB3 Gas Pipeline Project, and the ANOH gas project being undertaken by NNPC Ltd,” Ella stated.
AKK Gas Pipeline Project
The AKK Gas Pipeline Project is a major focus, with an estimated cost of $2.8 billion. This pipeline is expected to deliver substantial economic benefits by supplying gas to power plants, increasing electricity generation, and fostering industrial growth in Northern Nigeria.
“These projects are geared towards ensuring an efficient and widespread distribution of gas, positioning Nigeria as a leading gas-powered economy,” Ella emphasised.
OB3 Gas Pipeline Project
The $700m OB3 Gas Pipeline Project, also known as the East-West Pipeline, connects the Obiafu-Obrikom gas plant in Rivers State to Oben in Edo State.
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Initiated in 2016, this pipeline is designed to transport over two billion standard cubic feet of gas per day. This project is pivotal for enhancing Nigeria’s gas distribution network.
ANOH Gas Project
The ANOH Gas Project, valued at $650m after a cost optimisation, is set to deliver its first gas by the third quarter of 2024.
This project is crucial for meeting Nigeria’s growing energy demands and contributing to the country’s economic development.
Government’s Commitment to Gas Expansion
The government is committed to expanding gas infrastructure under the Decade of Gas program. Ella highlighted, “The President places a high premium on gas infrastructure development and supply.
He demonstrated this with the launch of the Decade of Gas program, ensuring Nigeria expands the supply and distribution of gas as the major source of energy.”
Diversifying Energy Sources
In addition to gas projects, the Ministry of Petroleum Resources is focusing on renewable energy and hydrogen development.
“Focusing on sustainable energy, the ministry has taken significant steps in developing a hydrogen policy to diversify Nigeria’s energy mix and contribute to global efforts in reducing carbon emissions,” Ella explained.
Call to Action for Ministry Staff
Ella urged ministry staff to recognize the urgency and importance of their roles. “To understand the enormity and urgency of the tasks before us, we have to appreciate the vast energy needs of Nigerians to power homes and industries,” he stated.
He called on all staff members to rise to the challenge and support the ministry’s efforts in driving and sustaining development.
Nigeria’s investment in gas infrastructure and diversification into renewable energy sources underscores its commitment to becoming a leading gas-powered economy.
With projects like the AKK, OB3, and ANOH pipelines in partnership with NNPC, the country is poised to achieve economic and industrial growth, benefiting its citizens and industries alike.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
