Nigeria is on the verge of becoming a leading gas-powered economy through the construction of three key gas projects with a combined worth of about $4.15bn, the Permanent Secretary, Federal Ministry of Petroleum Resources, Nicholas Ella announced on Thursday.
According to Ella, the projects, being handled by the Nigerian National Petroleum Company Limited, include the Ajaokuta-Kaduna-Kano Gas Pipeline Project; Obiafu-Obrikom-Oben Gas Pipeline Project, popularly called OB3 gas project; and the Assa North-Ohaji South gas project, also known as ANOH project.
Speaking in Abuja during an interactive session with employees of the ministry, the Permanent Secretary said: “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 the NNPC Ltd.
“These projects are geared towards ensuring an efficient and widespread distribution of gas, positioning Nigeria as a leading gas-powered economy.”
Data from the petroleum industry showed that the ANOH project is worth $650m. This is after a cost optimisation program brought the initial budget of $700m down. The project is not operational yet, with the first gas expected in the third quarter of 2024.
For the AKK gas pipeline project, the total cost is estimated at around $2.8bn. The pipeline’s value is not just about construction.
It is expected to bring significant economic benefits to Nigeria by delivering gas to power plants, increasing electricity generation, supporting industrial growth in Northern Nigeria and creating jobs.
The $700m Obiafu-Obrikom-Oben gas pipeline project, popularly called OB3, started sometime in 2016 and is also known as the East-West Pipeline.
It connects the Obiafu-Obrikom gas plant near Omuku, Rivers State, to Oben, Edo State and is to transport over two billion standard cubic feet of gas per day.
Speaking further on gas infrastructure at the meeting, Ella said: “The President places a high premium on gas infrastructure development and supply. He demonstrated this with the launch of the Decade of Gas programme, ensuring Nigeria expands the supply and distribution of gas as the major source of energy.
“Many states of the federation are latching onto the Federal Government’s gas expansion programme. We are vigorously driving gas expansion to every nook and cranny of the country with the National Gas Expansion Programme.”
Furthermore, he stated that the ministry would focus on diversifying the country’s energy mix by investing in renewable energy projects, and hydrogen development and enhancing the regulatory framework to attract private investments.
“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.
“This policy framework aims to establish hydrogen as a viable alternative energy source, leveraging our existing gas infrastructure to produce green hydrogen”, he stressed.
Data from the petroleum industry showed that the ANOH project is worth $650m. This is after a cost optimisation program brought the initial budget of $700m down. The project is not operational yet, with the first gas expected in the third quarter of 2024.
For the AKK gas pipeline project, the total cost is estimated at around $2.8bn. The pipeline’s value is not just about construction.
It is expected to bring significant economic benefits to Nigeria by delivering gas to power plants, increasing electricity generation, supporting industrial growth in Northern Nigeria and creating jobs.
The $700m Obiafu-Obrikom-Oben gas pipeline project, popularly called OB3, started sometime in 2016 and is also known as the East-West Pipeline.
It connects the Obiafu-Obrikom gas plant near Omuku, Rivers State, to Oben, Edo State and is to transport over two billion standard cubic feet of gas per day.
Speaking further on gas infrastructure at the meeting, Ella said: “The President places a high premium on gas infrastructure development and supply. He demonstrated this with the launch of the Decade of Gas programme, ensuring Nigeria expands the supply and distribution of gas as the major source of energy.
“Many states of the federation are latching onto the Federal Government’s gas expansion programme. We are vigorously driving gas expansion to every nook and cranny of the country with the National Gas Expansion Programme.”
Furthermore, he stated that the ministry would focus on diversifying the country’s energy mix by investing in renewable energy projects, and hydrogen development and enhancing the regulatory framework to attract private investments.
“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.
“This policy framework aims to establish hydrogen as a viable alternative energy source, leveraging our existing gas infrastructure to produce green hydrogen”, he stressed.