NNPC signs MoU with Kaduna govt on gas plant production

Posted by News Express | 27 August 2021 | 667 times

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The Nigerian National Petroleum Corporation (NNPC) has signed a Memorandum of Understanding with the Kaduna State government on gas plant production with the aim of

delivering gas into the domestic market.

The Group Managing Director (GMD) Mele Kyari who led a delegation to the Sir Kashim Ibrahim House in Kaduna Thursday, said soon, gas will be available to all communities at a cheaper rate within the State.

At the occasion, the GMD mentioned that many prominent industries situated in Kaduna have gone moribund due to shortage of energy and that, the solution is by reviving them using gas.

According to Kyari, the challenge has been lack of appropriate infrastructure in the country, both in terms of producing gas and delivering it to homes and businesses.

“We are building some infrastructure so that gas becomes very close to its end users. Once we are able to do that, gas can be piped into homes instead of carrying them in cylinders. If gas is created, we will be able to compress it at very local locations and it will be easily delivered to homes and offices,” he said.

The NNPC GMD further stated that, the MoU is to also leverage on the corporation’s ongoing projects across the country, especially through the Ajaokuta-Kaduna-Kano, AKK, pipeline which will in turn avail gas to all parts of the country.

Kyari said the MoU is a working document that would be developed, worked on, and ultimately, deliver value to the people of Kaduna State.

“We are also working on the gas pricing framework that will help investors recover their cost which will be competitive in nature and at the same time, not to create pains to the end users. Gas will eventually be cheaper than the price is being sold presently,” he added.

Kyari assured that in the long term, no community would be excluded in the project, as gas would be available everywhere in the next three years.

He also disclosed that, NNPC intends to establish 1,300 megawatt power plant in Kaduna.

Responding, the Kaduna State Governor, Nasiru El-Rufai, assured that signing the agreement with Gas Aggregation Company of Nigeria, GACN will boost businesses and create job opportunities in the state.

He said gas provides cost effective option in powering factories, homes and vehicles, stressing that, it is a booster to job creation strategies which will create jobs and skills for artisans who will work on the gas pipeline and other social infrastructure.

“Beyond that, the project will power industries that have responded with enthusiasm to our investment promotion campaign,” said.

The Governor explained that the agreement will bring nearer the availability of significant additional sources of energy and businesses in Kaduna state.

He promised that his administration will jointly work very hard to ensure the project's timely implementation.

Source: News Express

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