February 2021

Articles  ·  Events
Federal Government of Nigeria prioritizes Diversification of the Economy through Gas Industrialization

In furtherance of the FGN’s drive towards ensuring that gas significantly contributes to the growth of the nation’s economy through gas to power generation, creation of new industries, and export of natural gas, the following infrastructure are currently being prioritized to support the FGN’s initiative:

Escravos – Lagos Pipeline System (ELPS 2)

The ELPS 2 is a 342km x 36” pipeline constructed to double the installed capacity of the existing ELPS from 1.1Bscf/d to 2.2Bscf/d.

The pipeline was constructed by Nigerian National Petroleum Corporation (NNPC) and spans from Oben node at PS1 in Delta State to Itoki at PS5 in Ogun State.

Ajaokuta–Kaduna–Kano (AKK) pipeline

The AKK pipeline is a proposed 614km x 48 pipeline. The AKK pipeline forms phase one of the 1,300Km long Trans-Nigeria Gas Pipeline Project (TNGP) – the single largest gas pipeline project scheduled to be executed in the history of Nigeria.

The AKK gas pipeline is planned to transport natural gas from Ajaokuta in Kogi State to Kano in Kano State. The pipeline will originate from Ajaokuta and pass through Abuja and Kaduna before ending at a terminal gas station in Kano. The AKK project would enable the injection of 3.5 Bscf/d into the domestic gas market upon completion.

The NNPC flagged off the construction of the pipeline in July 2020 and is expected to be completed in Q1 2023.

 Obiafu – Obrikom – Oben (OB3) pipeline

The OB3 pipeline (also called the East-West pipeline) is a proposed “127km x 48” pipeline with a projected capacity of 2Bscf/d. The pipeline will originate and run from the Obiafu-Obrikom gas plant near Omoku, Rivers State to the Oben node in Edo State.

The OB3 pipeline is currently being constructed by NNPC with an expected completion date of Q2 2021.


Pipeline Image by https://en.wikipedia.org/wiki/Pipeline_transport

Articles  ·  Events
GACN appointed as Shippers’ Agent under the Nigerian Gas Transportation Network Code

Consistent with the Federal Government’s objective of improving gas supply to the domestic market, the Department of Petroleum Resources (DPR), on 8th August, 2020, granted a license to Gas Aggregation Company Nigeria Limited (GACN) to act as an Agent for Licensed Shippers within the framework of the Nigerian Gas Transportation Network Code (NGTNC).

The NGTNC is a contractual framework between the gas transportation Network Operator (NGC) and Shippers (Gas Buyers and Sellers). The NGTNC which was operationalized on 10th August, 2020, specifies terms and guidelines for operation and use of the gas transportation network with the aim of providing open and competitive access to gas transportation infrastructure in line with global best practices.

GACN is the first and currently the ONLY licensed Shippers’ Agent on the Network Code.

GACN will optimize its strategic position in the Nigerian gas market to create value for Shippers who appoint GACN as Agent. Some of the benefits which GACN promises to offer its appointing Shippers include: effective and optimized Shipper portfolio management, market optimization of the gas transportation network, reduction in transaction cost and operational burden of Shippers, seamless value chain Stakeholder management and focused alignment, amongst others.

GACN is currently engaging DPR, NGC and other relevant Stakeholders to facilitate the timely implementation of the NGTNC.

Articles  ·  Events
Public Hearing on Petroleum Industry Bill (PIB)

The House of Representatives Ad-hoc Committee on the Petroleum Industry Bill (PIB) organized a two-day public hearing on the PIB on 27th and 28th January 2021. The public hearing which was attended by industry stakeholders including NNPC, OPTS, state governments, host communities, GACN, etc. sought to address lingering issues in the oil and gas industry.

The Bill seeks to create governing institutions with clear and separate roles to promote transparency, good governance and accountability in the administration of Nigeria’s petroleum resources. The Bill also seeks to establish a framework for the creation of a self-financing Domestic Gas Aggregator. In contemplation of the role of the Aggregator for the stimulation of the growth of the domestic gas market under the PIB, GACN like other stakeholders submitted and adopted its memorandum at the public hearing.

The PIB promises to enhance the growth of Nigeria’s oil and gas industry, modernize our fiscal system, encourage competitiveness and create harmony for all stakeholders.