Ahead of the expected completion of the $2.8 billion Ajaokuta-Kaduna-Kano gas pipeline, 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.
The Corporation in a statement on Thursday by its Group General Manager, Group Public Affairs Division, Garba Deen Muhammad explained that the deal 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.
The MoU was signed by the Group Managing Director of NNPC, Mallam Mele Kyari on behalf of the Corporation while the Kaduna State Governor, Mallam Nasiru el-Rufai signed on behalf of the State Government.
Speaking at the MoU execution ceremony in Kaduna, Mallam 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 through a number of strategic gas expansion projects such as the ongoing OB3 and Ajaokuta-Kaduna-Kano Gas Pipeline Projects.
According to him, “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 stated that the Corporation was committed to the commercialization 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 huge gas resources would continue to be an important source of clean energy for today and the future.
He noted that “There is no better way of making cheaper and cleaner energy than delivering gas into the domestic market”.
He added 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 were maximized.
“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.
He 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).
Also speaking at the event facilitated by the Gas Aggregation Company of Nigeria (GACN), Governor Nasiru el-Rufai said Kaduna State Government was delighted with the prospect of having an additional energy source to power businesses in the state.
He said: “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”.
He particularly thanked the GMD NNPC and the Gas Aggregation Company of Nigeria for the gas utilization and expansion initiative and zeal displayed by to deliver the project.
“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,” he added.
