NNPC boosts industrial revolution, commissions 150m scf/day Ibefun gas infrastructure
In its bid to deepen the utilisation of natural gas across the geopolitical zones of the country, the Federal Government, via the Nigerian National Petroleum Corporation (NNPC) Limited, on Tuesday, commissioned the Transit Gas Nigeria Limited (TGNL)’s 150MMSCFD Natural Gas City Gate Infrastructure located in Ibefun, Ogun state.
The facility project is a Joint Venture (JV) between the NNPC Gas Marketing Limited (NGML) and TGNL and is aimed at deepening access to cost-effective energy for industries in Nigeria’s Southwest region.
Transit Gas Nigeria Limited is a subsidiary of Axxela Limited and has over 20 years, grown to become the largest private sector gas distributor in Nigeria.
Currently, the company is working on a phase 3 expansion project to deliver natural gas with Sagamu into Epe and other parts of Ogun state.
Speaking during the commissioning of the gas City gate infrastructure, the Managing Director, NNPC Limited, Mele Kyari, noted that despite being blessed with abundant gas, there are still challenges in the utilisation of gas domestically.
He noted that it has become imperative for players in the industry to tighten their belts and ensure that this abundant resource is put to use domestically.
Kyari who was represented by the Group Executive Director, Gas and Power at NNPC Limited, Engr Abdulkabir Ahmed, said that the partnership between the stakeholders in the industry is aimed at promoting and integrating the usage of gas in domestic homes and generation of power in industries which will eventually lead to economic growth and prosperity for the people not only in Ogun state but also Nigeria.
According to him, the project would be an additional achievement to the decade of gas that was earlier launched by President Muhammadu Buhari to ensure that the prosperity of Nigeria and Nigerians are moved to the next level.
He expressed confidence that the 150Mscfd city gas station, gas distribution and infrastructure will create jobs, enhance economic development and propel industrial growth within Ogun state and beyond.
“We are glad to connect one of the state’s largest beverage and food factories in Ososa. The facility could not have been possible without the work that Mr Governor has put in Ogun state to ensure an enabling environment for industries to be set up and also thrive.
This can ensure that the state generates taxes, accrues revenue and fulfils its own obligations. We look forward to partnering with the state government to supply natural gas to the state cargo airports and other potential economic projects,” Kyari said.
Also speaking, the Governor of Ogun state, Dapo Abiodun, noted that the completion of the facility marks another milestone in the history of gas penetration in Nigeria and in particular Ogun state.
Abiodun stated that the facility will support, drive and complement the administration of gas mobilisation projects, provide jobs, alleviate poverty, and provide food security.
He revealed that the state is planning to introduce gas-powered mass transit vehicles and begin the deployment of electric motorcycles, all to reduce carbon emissions, as it joins other countries in going green.
Citing data from the National Bureau of Statistics (NBS), he noted that Ogun state is one of the top industrial hubs that led the chart of energy consumption in Nigeria.
“Natural Gas has been projected to be the fastest fossil fuels over the next two decades and the fundamentals for gas as the future of energy are potentially strong across key sectors of our economy. Hence, gas will play a crucial role in driving industrial growth by providing the energy security needed for continuous production and reducing energy costs for manufacturers.
This great project will reinforce our commitment towards innovative solutions that creates sustainable and efficient energy utilisation for the benefit of the good people of Ogun state. In fact, providence has put us in an advantageous position for us to continue to benefit immensely from our geographical location. The commissioning of this project is important to sustain and improve our public-private partnership programme, policies as well as our light up Ogun initiatives”, Abiodun said.
Earlier in his opening remarks, the Chief Executive Officer, TGNL, Bolaji Osunsanya, said that the development of the Sagamu gas distribution zone is borne of the need to deliver on our medium-to-long-term market expansion strategy, broaden its asset portfolio and strengthen its market play in the energy sector.
“This is the first time that we are doing this as a real joint venture and is a good testament to our long-standing relationship and proof of effective public-private collaboration. Our partnership with NNPC Gas Marketing Limited (NGML) has continued to create opportunities for both parties to leverage our expertise and resources to develop more infrastructural projects to drive economic growth in Nigeria and across the region.
We believe that the completion of this project will help to deepen the utilisation of natural gas in Ogun state”, Osunsanya said.
Expressing his delight towards contributing to the state’s development agenda, he said the newly commissioned facility will spur Ogun state on to exponential economic growth by enabling industrialisation within the state, promoting investments and supporting the manufacturing sector