Towards realising the objectives of the “Decade of Gas” set out in Nigeria, the federal government has initiated measures aimed at ensuring adequate supply of gas to the strategic sectors of the domestic market to enhance natural gas usage.
A key move is the ongoing Ajaokuta-Kaduna-Kano Gas Pipeline construction project which will be the major artery for gas feedstock to the hinterland to make gas available as a deliberate step towards achieving industrialisation in Nigeria.
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In view of this, the Gas Aggregation Company of Nigeria (GACN) is holding its “2021 Gas Sector Stakeholders’ Forum” in Kano today. Daily Trust in this piece, dissects the crux of the forum and its expected objectives.
According to the management of GACN, the government is organising the forum in Kano to create mass awareness on the ongoing effort to prioritise and expand effective gas utilisation across the Northern part of the country.
The event, with the theme: “Optimising the Economic Development Capacity of the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project”, is expected to be practical, as it attracts major energy users in the AKK coverage states.
The forum which is holding at the Nassarawa area of Kano is the initiative of GACN, the strategic aggregator, which was established by the federal government in partnership with some multinational oil and gas firms.
Prominent speakers at the forum include President Muhammadu Buhari who has been requested to deliver the keynote address; the Minister of State for Petroleum Resources, Chief Timipre Sylva; the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari; the President/CEO of Dangote Group, Alhaji Aliko Dangote; the governors of Kaduna, Kano, Nasarawa, Niger and Kogi states.
At the event, the Managing Director of Greenville Liquefied Natural Gas, Mrs Ritu Sahajwalla, will be speaking on the strategic importance of virtual pipeline companies and autogas initiative for national gas expansion and economic development.
Gas generator companies that specialise in conversion from diesel generator sets to gas will also be in attendance at the forum. The event will also feature an exhibition where gas producers and pipeline companies will engage with power consumers.
The place of AKK in local gas supply
According to records from GACN, it was established in 2010 to serve as the “Strategic Aggregator” pursuant to the National Domestic Gas Supply and Pricing Regulations, 2008 (the Regulation), for the implementation of the Nigerian Gas Master Plan and Management of Domestic Supply of Gas to the market.
In furtherance of the government’s drive towards ensuring that gas significantly contributes to the growth of the nation’s economy through gas to power generation, creation of new Gas-Based Industries and utilisation of gas as automobile fuel (autogas), a number of infrastructures are currently being prioritised to support the initiative.
One of the critical infrastructures is the 614-kilometre by 48 inches Ajaokuta-Kaduna-Kano (AKK) gas pipeline, which is one of the biggest gas delivery infrastructure projects in Nigeria.
The federal government flagged off the construction of the $2.8bn AKK pipeline project in July, 2020, through the NNPC, and it is expected to be completed in 2023.
According to reports, the pipeline project forms phase one of the Trans-Nigeria Gas Pipeline (TNGP) project. It is being implemented via a Build and Transfer (BT) Public-Private Partnership (PPP) model which involves the contractor providing 100 per cent of the funding.
The project will be funded by the Bank of China and Sinosure, while the Nigeria’s Fidelity Bank will support the project. Construction commenced in July, 2020, with commissioning scheduled for 2022.
It will feature a diameter of 40 inches and is expected to transport 3,500 million metric standard cubic feet per day (mmscfd) of dehydrated wet gas from several gas gathering projects located in Southern Nigeria.
The development is expected to reduce the large volume of gas flared annually in Nigeria, as well as the subsequent environmental impact.
The project will be executed in three phases, with phase one covering the construction of a 200km segment between Ajaokuta and Abuja Terminal Gas Station at a cost of $855m.
Phase two will comprise a 193km section to be built between Abuja and Kaduna at a cost of approximately $835m. Phase three will involve the construction of a 221km section between the Kaduna Terminal Gas Station (TGS) and Kano TGS. This section will cost an estimated $1.2bn to complete.
The AKK pipeline is intended to boost Nigeria’s electricity generation capacity by adding 3,600 megawatts (MW) of power to the national grid and providing electricity in the Northern part of the country with supply from the South.
It will also strengthen the industrial sector within the country’s Eastern and Northern regions.
The project is also expected to promote and increase the local usage of domestic gas and will significantly control gas flaring in the Niger Delta.
Additionally, it is anticipated to increase the country’s revenue generation through the export of natural gas.
Already, GACN has met with stakeholders in preparation for the main forum. The company met with the National Association of Road Transport Owners (NARTO), National Union of Road Transport Workers (NURTW) and the Manufacturers Association of Nigeria (MAN) in Kano where private investors in the gas energy industry were sensitised and the concerns raised by the stakeholders were addressed.
GACN, along with NNPC, earlier signed a Memorandum of Understanding (MOU) with the Kano State Government for the establishment of the AKK committee in Kano and the creation of a new gas industrial park at Tamburawa by the state government.
GACN then met with NARTO, NURTW and the Petroleum Tanker Drivers (PTD) in Abuja afterwards where Ogunleye said attention was shifting from oil to gas, and thus that the country should not be left behind.
He urged transport workers not be left out to reap the benefits of the new focus in the energy sector as he assured them that gas conversion was cheaper and cleaner for their vehicles.
NARTO President, Alhaji Lawal Yusuf Othman, said the union had shown willingness to benefit from the federal government’s conversion of one million vehicles.
Key expectations as GACN meets operators, others
According to the Managing Director and CEO of GACN, Olalekan Ogunleye, the forum is geared towards achieving four key objectives.
The first is to discuss current and proposed gas utilisation projects in the Northern region of Nigeria and how such projects can benefit from immediate Gas to Power or other gas commercialisation solutions through virtual pipeline, captive/embedded power solutions, gas distribution development initiatives, among other strategies.
The second objective is to identify challenges and offer solutions that ensure increased gas utilisation in the region and the country.
Thirdly, the forum will enable participants to collate factual data for natural gas requirements in the northern region and align on how best to attract new investment, industrialisation and infrastructure development for economic growth which in turn will increase employment.
The fourth aim of the forum is to provide the platform for industry stakeholders’ interaction, networking and value co-creation.
He also noted that GACN was organising the event in collaboration with NNPC which would be declared open by President Muhammadu Buhari.
According to the programme of the event, preparation had begun by the planning committee and the Kano State Government since Wednesday with a cultural night to welcome participants to Kano.
The organisers said the event proper, has the welcoming ceremony, technical sessions and the exhibition. During the welcoming session, the MD, Nigerian Gas Company Limited, Seyi Omotowa, will speak on: “AKK Project Execution Update and Completion Schedule”, followed by the welcome remarks by the Chairman, GACN Board, Mansur Sambo.
President Buhari’s keynote address will focus on: “The Imperative of Synergetic Government – Private Sector Partnership to Optimise the Benefits of Major Infrastructure Projects in Nigeria”.
The first technical session is on “Leadership Overview” with Chief Sylva speaking on “The Significance, Gains and Benefits of the Ongoing Focus on Gas Development”.
The next topic titled: “The AKK as an Economic Development Game Changer – NNPC’s Vision, Contributions and Plan Forward”, will be delivered by Mr Kyari.
In the second technical session titled, “AKK Host States Showcasing Business Investment Attraction”, six state governors will speak under the central theme: “Investment Opportunities, Ease of Doing Business”, and special attractions (Free Trade Zones – FTZs/industrial parks).
The Minister of State, Petroleum, Chief Sylva, will then lead participants through the exhibition booths which continues all day.
The third session will feature a presentation on gas supply to the domestic market by Adokiye Tombomieye, the Chief Operating Officer, Upstream at NNPC.
During the fourth technical session, there will be panel discussions based on the central theme, optimising the benefits accruing from the AKK project, with panellists including Aliko Dangote.
The fifth session is on “Near/Mid-Term Energy Solutions”, while the sixth session is on the theme: “Gas Utilisation Penetration Initiative”. This session will have specific discussions on the importance of virtual pipeline companies and the autogas initiative; and business opportunities in the unfolding LNG-CNG and vehicular CNG business models.
The last session is on “Local Content Opportunities and Employment Generation Spin Offs from the AKK Project”.
The forum will then close with participants working on an “Action plan for optimising the economic development contributions of the AKK project” to be led by the GACN boss, Mr Ogunleye, while the exhibition continues, as well as business engagement meetings.
