NEWS
NNPC Maps Out Gas-Driven Transformation For Nigeria’s Industries
Mr. Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Ltd., announced plans to leverage Nigeria’s extensive gas resources to transform the country’s power and industrial domains.
This revelation took place at the NNPC Towers in Abuja during the signing of a Shareholders Agreement (SHA) between NNPC Ltd., UTM Offshore (a local company), and the Delta State GovernmentGovernment on Tuesday.
The agreement focuses on establishing Nigeria’s inaugural Floating Liquefied Natural Gas (FLNG) facility.
Kyari said “In the next 2-3 years, we will use gas to bring about a revolution in our country. The outcomes will be clear on the table; there will be prosperity, and value will be created. Not just creating gas for export but progressing on all our initiatives of bringing gas into the domestic market.
“Our backbone infrastructures are almost ready to ensure we achieve that. Once that happens, we will see the immediate impact on the power sector, gas-based industries and several other collateral value that this will create.”
Kyari emphasized the urgency of the FLNG project, highlighting Nigeria’s substantial but underused gas resources.
He underscored the nation’s shift toward monetizing these resources for both national and global benefit.
Kyari further noted the alignment of the FLNG Project with the Federal Government’s Decade of Gas Initiative and the President’s objective to establish a gas hub, aiming for enhanced value and Nigeria’s rightful prosperity.
Expressing NNPC Ltd.’s dedication to the initiative, Kyari highlighted the unique position of the FLNG project, being the first of its kind where the company is actively involved with a vested equity interest.
He said “More than this, there are several Floating LNGs that we are promoting, including fixed LNG projects. We are happy to collaborate with the Delta State Government. We will take practical steps to get it done. We are committed to delivering this project in time, on schedule and in the best possible cost,”
Earlier, Mr. Julius Rone, the Group Managing Director of UTM Offshore Limited, hailed the execution of the SHA as a significant stride in realizing Nigeria’s inaugural indigenous FLNG project.
He expressed gratitude to President Bola Tinubu for his dedication to developing the nation’s gas resources, notably showcased during the COP28 Conference in Dubai.
At the conference, President Tinubu pledged to eliminate gas flaring entirely and utilize Nigeria’s gas as a transition fuel, aligning with global efforts for cleaner energy and reducing methane emissions in oil and gas operations.
Rone also praised the GCEO of NNPC Ltd for his leadership and commitment in ensuring the development of Nigeria’s gas resources in accordance with the provisions outlined in the Petroleum Industry Act (PIA) of 2021.
Governor Sheriff Oborevwori of Delta State highlighted the state’s significant stake in Nigeria’s gas reserves, amounting to 40%.
He explained that the decision to hold an 8% equity in the FLNG project stemmed from their firm belief in its pivotal role in the national economy.
In addition to generating over 300,000 metric tonnes of LPG (cooking gas) specifically for the domestic market, the Governor emphasized the project’s wider benefits.
He noted that the FLNG initiative would aid in curbing environmental risks in the Niger Delta by reducing gas flaring.
Moreover, it is expected to create numerous job opportunities and facilitate the transition from kerosene and firewood to cleaner energy sources. This shift, in turn, would enhance the health and overall well-being of the populace.
The Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, stressed that the FLNG initiative would play a pivotal role in monetizing Nigeria’s gas resources, thereby bolstering the economy and achieving energy security.
Additionally, Mr. Olalekan Ogunleye, the Executive Vice President, Gas, Power & New Energy, commended the Federal Government’s commitment to leveraging gas as a catalyst for rapid economic growth.
He highlighted this commitment through initiatives like the Decade of Gas aimed at fostering a robust gas economy.
As for the FLNG facility, it is anticipated to yield between 1.81 to 2.72 metric tonnes per annum (mtpa) of gas.
The project’s equity structure involves NNPC Ltd., UTM Offshore, and the Delta State Government, holding stakes of 20%, 72%, and 8% respectively.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns over alleged monopolistic practices by Dangote Refinery, following a public dispute about fuel pricing in the downstream petroleum sector.
Recall that the refinery, Africa’s largest, recently disclosed its petrol pricing at N990 per litre in trucks and N960 per litre into ships, a move it justifies as being in line with international rates.
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PETROAN, however, sees this as an attempt to suppress competitors and dominate the Nigerian market.
The rift began when Dangote Refinery claimed that complaints from marketers regarding its pricing were fueled by intentions to import cheaper, potentially substandard products.
In response, PETROAN strongly rejected these allegations, suggesting that Dangote’s claims are tactics designed to maintain a monopoly in the sector.
Joseph Obele, PETROAN’s spokesperson, stated that the association remains committed to importing high-quality products at more competitive rates to ensure affordability for Nigerian consumers.
According to PETROAN, competition in the market is essential for achieving fair pricing, and any attempt to stifle it would be detrimental to consumers.
They argue that Dangote Refinery’s pricing should reflect production costs and fair margins rather than international benchmarks, especially given concessions granted by the government for the refinery’s establishment.
PETROAN also announced its plans to partner with foreign refineries and financial backers to import premium-quality petroleum products at prices below current rates.
The association aims to enter the market by December 2024, pending necessary regulatory approvals.
“The allegations that PETROAN will import substandard products are unfounded and aimed at creating an unfair playing field,” the statement read.
PETROAN warned that similar claims in the past had led to significant price hikes when competitors were pushed out, emphasizing that the entry of new players into the market would lead to more competitive pricing and ultimately benefit Nigerian consumers.
PETROAN expressed appreciation for President Bola Tinubu’s commitment to revitalizing Nigeria’s state-owned refineries and urged the government to consider privatizing the Port Harcourt and Warri refineries once rehabilitation is complete.
The association believes a transparent privatization process will help strengthen Nigeria’s downstream sector and counter monopolistic tendencies.
To address the ongoing pricing challenges in the sector, PETROAN called on the government to convene a comprehensive meeting of industry stakeholders, including major associations like IPMAN, DAPPMAN, MEMAN, NUPENG, and PENGASSAN.
PETROAN believes that collaboration among these groups will be instrumental in establishing a sustainable and competitive pricing framework for petroleum products in Nigeria.
Sultan of Sokoto, Sa’ad Mohammad Abubakar II, has called on Nigerians to avoid publicly criticizing their leaders, instead urging citizens to place their trust in God to address leadership concerns as He deems fit.
Speaking at the Regional Conference on Climate Change-Induced Conflicts in Northern Nigeria, organized by the Kaduna State Bureau of Interfaith in collaboration with International Alert, the Sultan emphasized faith and patience in navigating the country’s challenges.
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Acknowledging Nigeria’s current economic and social hardships, the Sultan encouraged continuous prayer, not only for the nation but for its leaders as well.
“Even though many feel times are particularly hard, we believe relief will come. Let’s increase our prayers for our leaders, trusting God to address them in His way,” he said, expressing hope that divine intervention could bring stability and prosperity.
The Sultan reminded political leaders of their ultimate accountability to God, cautioning that they will stand alone on the Day of Resurrection, with only their deeds to support them.
“On that day, every leader will stand alone. Governors, advisers—none will have support except their own deeds. Let us act with a deep sense of responsibility and fear of God,” he stated.
Addressing religious leaders, he warned against misleading their followers for personal gain, underscoring the trust many place in their religious guidance.
“Only God can save any human being,” he said, encouraging Nigerians to remain faithful and discerning in their spiritual beliefs. “Focus on worshiping Allah and leave the rest to Him. Don’t follow those who might lead you astray.”
With leaders from various religious communities, including the President of the Christian Association of Nigeria (CAN), in attendance, the Sultan called for unity, resilience, and communal effort to tackle pressing issues such as climate change, poverty, and insecurity in the northern region.
He praised the North’s history of unity and resilience, warning against divisive narratives that threaten communal harmony. “When we are united, we can face any challenge and build a prosperous community,” he asserted.
The Sultan’s remarks come amid ongoing social and environmental issues in the region, including a recent surge in climate-related challenges that have exacerbated poverty and security threats.
In light of these issues, he called on both Muslims and Christians to intensify their prayers, saying, “Our country faces many challenges, and we must turn to God in prayer. Let us intensify prayers in our mosques and churches.”
In a decisive move, President Bola Tinubu has ordered the immediate release of all minors detained by police during the recent #EndBadGovernance protests.
The directive, announced by Minister of Information and National Orientation, Mohammed Idris on Monday, underscores the government’s commitment to protecting children’s rights and ensuring justice.
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Idris confirmed that President Tinubu’s directive prioritizes the welfare of detained minors, instructing the Ministry of Humanitarian Affairs to facilitate their safe reunification with their families.
A committee led by the Ministry of Humanitarian Affairs will be established to oversee the welfare of the released minors and ensure compliance with the president’s orders.
Additionally, President Tinubu has directed a formal investigation into the actions of law enforcement agencies involved in the arrests.
The president emphasized that any misconduct uncovered during the investigation will result in disciplinary action, affirming his administration’s dedication to accountability within law enforcement.
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