Blog

Articles  ·  Events  ·  News Clip
GACN-DAILY TRUST GAS UTILIZATION PUBLIC ENGAGEMENT COLLABORATION

Daily trust newspaper in forging partnership with GACN has again made the bond stronger by publishing on print and online as drawing the attention of the public to the role GACN is playing and will continue to play in its power to optimize the economic development capacity of the Ajaokuta-kaduna-kano “AKK” gas pipeline project.

The AKK forum which will host dignitaries and high-profile personalities will be hosted on July 29th at Afficient event centre kano. The forum which will support the realization of industrialization focuses on AKK – the biggest gas pipeline in Nigeria. The AKK pipeline will create and enable the supply of sufficient domestic gas supply to the market and harness the nation gas reserves to stimulate rapid industrialization.

Nigerian pilot was not left out in its quest to collaborate with GACN in terms of media publicity. The newspaper also conjoined with daily trust on assuring and supporting GACN by highlighting the objectives of the forum and its achievements once completed.

DSC_7530
DSC_7524
DSC_7528
Previous
Next

Related Article

FG moves to boost local use of Natural Gas


Articles  ·  Events  ·  News Clip
COURTESY CALL TO MEDIA TRUST ON THURSDAY, 3RD JUNE 2021

Gas Aggregation Company Nigeria paid a courtesy visit to Media trust on Thursday at their head office at Utako. The team was received by Media Trust’s CEO, Mallam Mamman Nura Daura, and Ahmad Shekarau, General Manager of Business and Strategy. The meeting aimed to solicit support and collaboration from Media Trust in publicizing the AKK Forum. GACN in its quest for corporate visibility appealed to Media Trust to massively advertise the event as it is structured to deliver optimum media publicity to ensure the success of this strategic gas sector value expansion. The meeting was a success as both parties immediately came to terms and assured each other of full collaboration and partnership.  The CEO of GACN, Mr. Olalekan Ogunleye, expressed his delight at the opportunity given to GACN by Media Trust in partnering with them to enhance their business objectives by leveraging on the AKK forum to make GACN soar to excellence in the Gas sector. Mallam Mamman Daura opined that Media Trust is honored to be part of this industrial achievement that will promote and ease commercial activities for the targeted population in creating more job opportunities in the AKK states and its neighbors.

DSC_7530
DSC_7524
DSC_7528
DSC_7530
DSC_7527

Previous
Next


Articles  ·  Events
AUTOGAS

Automotive LPG or Autogas is the most accessible alternative fuel. Driving an LPG vehicle is safe, easy and, in many countries, considerably cheaper than driving a petrol or diesel model. LPG also emits less CO2 (Carbon-dioxide) and fewer other emissions such as NOx (Nitrogen Oxide).

Autogas first came into light in the mid 1930’s, LPG had been discovered in Germany only a few years earlier as a condensate when compressing refinery off-gas to extract gasoil. It was being sold in cylinders as propane and butane or as a less refined mixture of both components. At the same time countries with a low supply of oil like England and Germany began experimenting with alternative fuels in search of alternatives to fuel their growing car fleets. Ultimately striving for self-reliance, no option was to be left untested. Among others, experiments were conducted with natural gas (methane) and LPG and it was discovered that vehicles running on LPG where more efficient than as it combines low cost and emissions with compared to traditional fuels.

There are four types of Autogas conversion systems:

  1. Converter-and-mixer systems
  2. Vapour phase injection (VPI)
  3. Liquid phase injection (LPI)
  4. Liquid phase direct injection (LPDI)

 

Global Adoption of Autogas   

Autogas is the most widely used alternative to conventional automotive fuels. Its acceptance and use have been growing quickly in some countries (Australia, Bulgaria, Canada, China, Czech Republic, France, Germany, Greece, India, Italy, Japan, South-Korean, Lithuania, Mexico, Netherlands, Poland, Portugal, Russia, Serbia, Spain, Thailand, Turkey, Ukraine, UK, US), with Nigeria being the foremost African country, thanks to government policies to encourage the use of alternative fuels on account of its inherent environmental, practical and cost advantages over other such fuels.

Autogas in Nigeria

In Year 2020, His Excellency, President Muhammadu Buhari declared it as the Year of Gas, and programmes are being implemented towards achieving this, such as;

The National Gas Expansion Programme (NGEP), which would help accelerate vehicle conversion and deployment of required infrastructure for the Autogas initiative and the LPG Penetration Framework are programmes, designed to reduce the national energy consumption of petrol and diesel by achieving a 40% switch from convention fuel to LPG in 10 years. The programme will also promote the wider use of LPG as Autogas, in households, power generation and industrial applications towards the attainment of five million metric tonnes domestic utilisation and creation of an estimated 500,000 job opportunities nationwide in five years. This is a step towards the Governments efforts in providing an alternative source of energy which is cheaper, cleaner and available in terms of production and supply.

Ongoing Initiatives

In an effort to promote the use of Autogas, the Government has created several projects and initiatives some of which are;

  • The setting up of Autogas and Natural Gas Vehicles Committee (ANGV) with an aim to promote the adoption of autogas as an alternative to power vehicles in Nigeria.

The ANGV is a sub-committee of the NGEP (launched by the Ministry of State for Petroleum Resources in January 2020) and their task is to promote LPG and CNG usage to power passenger cars and city buses thereby creating alternative fuel choices for Nigerians.

  • N250 billion financial facility recently earmarked by the Central Bank of Nigeria (CBN) to fund the Autogas programme.
  • The AKK pipeline project

Nigeria’s largest city plans to convert 25% of vehicle fleet to Autogas in four years. The Lagos State Government has outlined plans for the conversion of one million vehicles, representing 25% of the four million vehicles in the state, to Autogas over a four-year period. The initiative is in line with the federal government’s commitment to emission reductions through the National Gas Expansion Plan. The Commissioner for Energy and Mineral Resources, Lagos State, Olatere Odusote, disclosed this at a workshop, titled “Stimulating Lagos State Socio-economic Growth through LPG Adoption.” The workshop was organised by the Lagos State Ministry of Energy and Mineral Resources with the support of the Office of the Vice President, the National LPG Expansion Plan and the German International Development Agency (GIZ). “Nigeria can showcase Lagos as its flagship economy in addition to other pilot states. The Commissioner also explained that the plan will also involve the deployment of Autogas conversion centres in partnership with OEMs and the rolling out of fuelling dispensers across the five divisions of Lagos State.

  • The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has listed at least 100 filling stations throughout the country that will be used in the federal government’s Autogas pilot scheme rollout. According to the President of PETROAN, Billy Gillis-Harry, the initiative would be replicated within the five divisional zones of the Nigerian National Petroleum Corporation (NNPC). For this, the association has signed a collaboration agreement with THLD International Logistics Limited on the use of retail outlets belonging to PETROAN as vehicle conversion centres. The retailers will provide the outlets while the partnering company will be responsible for the training and provision of the technical infrastructure for the conversion centres. “This project is huge,” said Gillis-Harry. “With this partnership with THLD Group, motorists can be sure of simply driving into any of our outlets and getting their vehicle conversions done with ease.”
  • BannerGas recently completed construction of an Autogas filling plants for NNPC to flag off the federal government’s Autogas policy. With the success of the launch, BannerGas is furthering its collaboration with NNPC for a vehicle conversion to use Autogas.
  • The role of BannerGas is to support the Federal Government of Nigeria in achieving its objective of ensuring smooth and quick transition to Autogas use by a critical mass of road users, by the expansion of its franchise network of LPG filling station network, as the faster deployment option to achieve improved accessibility and market penetration. The initiative, which is being conducted in phases, is currently taking place in Abuja, where technicians are being taught in batches to acquire special skills on Autogas conversion. However, the plan is to expand the project to other states of the federation, where the company has ongoing plans to set up more Autogas conversion centres.
  • THLD International Logistic Limited, is entering Africa’s largest commercial nerve centre to enable Nigerians use LPG as a viable replacement of expensive petrol and diesel. The company has a top of the class factory under construction on over 21 plots of land in Otta Ogun state, where LPG trailers, bobtail, skid tank, cylinders, Autogas tanks and storage tanks will be built. This will be the first plant of its kind in all Africa, and will create job opportunities for Nigerians and encourage made in Nigeria goods.

 

References


Articles  ·  Events
Courtesy call to the Governor of Kaduna State, His Excellency Nasir Ahmad el-Rufa’i

On Wednesday, the 26th of May 2021, the GACN team which comprises of the Managing Director, Mr. Olaleken Ogunleye, Yetunde Odejobi, the manager operations, Ruqaiyah Saidu Abubakar, the Public affairs advisor, Hadiza Garbati and Fadimatu Dalil who are AKK forum external committee members visited the governor of Kaduna state, Mallam Nasiru el-Rufa’i.

Mr. Ogunleye made a very comprehensive and grand presentation to the governor who was impressed by the legacy of the company and its achievements while the governor reiterated that his administration will remain steadfast in its support of GACN and their AKK forum objectives.

Mr Jimi Lawal, the senior adviser and counsellor to the Kaduna state government also made his input by suggesting GACN should incorporate all the economic collaborations in the Kaduna state that need Gas as an energy and also suggested GACN to make a presentation in the Kaduna state next economic council meeting with other members who were not present. Mallam el-Rufa’I Pledged to be part of the great economic benefits the AKK forum has proposed and put forward to attainment of this economic development in his state.


Articles  ·  Events
Courtesy Call to the Governor of Kano State, His Excellency Dr. Abdullahi Umar Ganduje

The AKK Forum which will be hosted by GACN on 28th and 29th of July, 2021 has taken a step ahead by paying the governor of kano state a visit on Tuesday, 25th May 2021 at his office in kano state.

The GACN team led by the managing director, Mr. Olalekan Ogunleye reassured the governor and the people of kano state of their allegiance of providing and making sure that Gas as an energy will be used to revive and boost their economic and business activities while the director general, media and public relations government house kano, Ameen K. Yassar gave his statement that Dr Ganduje has expressed his confidence in the ability of the federal government to complete and commission the Ajaokuta, kaduna and Kano (AKK) Gas pipeline project, believing that the project will create huge economic impact in the state which he said will revive the dead industries and create more jobs by sustained gas supply to kano and its environs.

This project once taken off will enhance and track fast economic development on the industries at Bompai, Sharada, Challawa 1 and 2, Tokarawa and Tamburawa, and markets states in Northern Nigeria, Chad, Cameroon and Niger republic. The governor restated that his administration had set up a local committee to coordinate with stakeholders on hitch-free implementation of the project.

Related links

AKK Gas Project will change the face of Kano, says Ganduje

AKK gas project will revive ailing industries, create jobs in Kano – Ganduje


Articles  ·  Events
Courtesy Call to the Emir of Kano Mai Martaba, His Royal Highness Alhaji Aminu Ado Bayero

The CEO of GACN Mr Olalekan Ogunleye and his team paid a courtesy call to the Emir of Kano on Tuesday, 25th May 2021 at his palace in kano state and were received by the private secretary to his highness Mallam Abdullahi Haruna Kwaru. His highness assured us of his commitment and support on behalf of his people for GACN in regards to AKK forum which will be hosted in kano in July this year. He called on and entreated GACN to do everything possible to support the business community in kano and the economic development initiatives of the kano state government bearing in mind that kano is a commercial hub in the North and strategic point for industrialization. We were awed by the exquisite display of cultural regalia and exaltation by the palace entourage who welcomed us the royal way.


Articles  ·  Events
Review of performance of domestic gas market in Nigeria in 2020

The Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva, declared 2020 as ‘the year of gas for the nation,’ an announcement that set the theme for the year. Consistent with the Federal Government of Nigeria (FGN) drive towards transitioning to gas based economy, this decade has further been declared as “the decade of gas”.

Nigeria is the largest oil producer in Africa and holds the largest natural gas reserves in Africa. According to the Department of Petroleum Resources (DPR), Nigeria’s proven gas reserves has increased by 0.57% from 202tcf recorded in January 2019 to 203.16tcf as at June 2020.

Given the country’s huge gas reserves and the comparative advantage of gas as a cleaner source of energy, Nigeria has witnessed significant increase in domestic consumption. Studies have demonstrated that oil reserves may dry up in the next 40 years. Thus, there is a paradigm shift that Nigeria is now referred to as a gas producer with proven oil reserves rather than the traditional label of an oil producer.

A significant amount of Nigeria’s gross natural gas production is either exported or re-injected while the rest is consumed for domestic use or flared.

The domestic market is categorized into 4 Sectors as follows:

  • Power
  • Gas Based Industries
  • Commercial (Local Distribution Companies)
  • Domestic LNG (newest category)

Power sector is currently the largest offtaker of domestic gas in Nigeria.

The table below depicts an overview of performance of the domestic market in 2021 vis-à-vis  

NB: 2021 data represents Q1 ONLY.

Nigeria’s natural gas sector is affected by the following issues which invariably impacts performance:

  • Power sector value chain challenges particularly liquidity;
  • Forex exchange fluctuations occasioned by devaluation of the Naira;
  • Gas transportation/Infrastructure network and virtual pipeline solutions;
  • Regulatory framework including Fiscal incentives;
  • Gas Pricing

 

The domestic market witnessed significant events in 2020, some which are enumerated below:

  • Finance Act – Passed in January 2020
  • Increase in VAT from 5% to 7.5% – Passed in February 2020
  • Nigerian Gas Transportation Network Code (NGTNC) launched in February 2020, operationalized in August 2020
  • The Covid-19 pandemic
  • VAT Modification Order (VAT exempt items) – May 2020
  • Slump in Crude Oil prices
  • Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project – construction flagged off in July 2020
  • Review of the Petroleum Industry Governance Bill (PIGB) for anticipated passage
  • National Gas Expansion Programme (NGEP) to expand domestic Autogas – rolled out in December 2020
  • Commissioning of Dangote Fertilizer project (Train 1)
  • Entrance of new independent gas Producers

In conclusion, the domestic market is expected to continue to grow rapidly with support of the FGN’s drive to ensure that gas significantly contributes to the growth of the Nation’s economy through gas to power generation, creation of new Gas Based Industries and utilization of gas as automobile fuel (Autogas), evident by critical infrastructure such as Ajaokuta-Kaduna-Kano (AKK) gas pipeline, Obiafu-Obrikum-Oben (OB3) gas pipeline and Escavos-Lagos Pipeline System (ELPS 2) which are all currently being prioritized to support the FGN’s initiative.

Sources

  • Nigerian National Petroleum Corporation (NNPC)
  • Department of Petroleum Resources (DPR)
  • Gas Aggregation Company Nigeria Limited (GACN)
  • Energy Information Administration (EIA)

Articles  ·  Events
A Decade of Excellence – Highlighting GACN’s Achievements and Milestones within the Domestic Market in the Past Decade

In a bid to create a framework for the optimization of Nigeria’s vast gas reserves, the Nigerian Gas Master Plan (consisting the Domestic Gas Supply Obligation “DGSO”, the Gas Pricing Framework and the Gas Infrastructure Blueprint) was approved by the Federal Government of Nigeria (FGN) in 2008 with a view to pursuing a sustainable growth path and leveraging gas for the economic growth of the country.

Pursuant to the foregoing, Gas Aggregation Company Nigeria Limited (GACN) “Strategic Aggregator” was incorporated in January, 2010 as the vehicle for the implementation of the Nigerian Gas Master Plan (NGMP), further to the National Domestic Gas Supply and Pricing Regulations, 2008 (the Regulations).

Key Achievements in the Last Decade

GACN has `now operated within the domestic market for over a decade and has achieved great success particularly evidenced by the significant change in the domestic market including increased domestic gas utilization through its gas commercialization initiatives, acceleration of gas development/utilization projects and the gradual restructuring of the erstwhile uncoordinated domestic market framework. GACN’s activities have also gained increased visibility and recognition in recent years.

Other milestone achievements included the following:

  • Sustained gas supply of about 1.6Bscf/d, which accounts for about 80% of current Domestic Gas supply;
  • Recategorization of the textile industry to ensure stable gas supply to textile companies at a regulated price for the sustainability of the textile industry within Nigeria;
  • Flexible/short term gas sale arrangements bespoke to offtake and supply capabilities, allowing for third party opportunity for the commercialization of stranded gas while optimizing existing value;
  • Stable gas supply to thermal power generation to underpin about 2500MW;
  • Execution of the foremost private IPP GSAA for the Aba Cluster;
  • Execution of the first Domestic Mini-LNG GSAA in Nigeria with negotiations ongoing for other Mini-LNG projects;
  • Acceleration and on schedule maturation of critical GBI projects i.e. Dangote and Indorama Phase II fertilizer plants. GACN is also currently facilitating the MPN JV/NSIA/OCP Fertilizer project which is slated to be the largest fertilizer project in Nigeria, a part of the Presidential Fertilizer Initiative (PFI) between the FGN and the Kingdom of Morocco on balance of Trade;
  • Deployment of critical softwares (Price Rule Aggregation Management Software (PARMS) and Infrastructure Due Diligence systems) to ensure a seamless operations and delivery of GACN’s mandate;
  • Dispute free disbursement of gas supply revenues through the PARMS;
  • Proactive and increased engagement with the power sector to proffer solutions to the liquidity challenge of the sector. The payment Assurance Framework was recently developed by GACN to cushion the liquidity challenge and improve payment credibility in the sector;
  • Alternative securitization instrumentse. Bank Guarantee, Letter of Credit, Security deposit, pre-payment into the Escrow Account etc to support gas offtake;
  • Foremost licensed Shippers’ Agent under the Network Code;
  • Consistent periodic Stakeholders’ engagements aimed at actively interacting with the market and stimulating new gas development projects;
  • Use of standardized industry template agreements for the various market segments aimed at reducing bureaucratic approval processes and negotiation timelines;
  • Wholistic overview of the domestic market trends and local content.

GACN recognizes the unwavering support from stakeholders across the domestic gas value chain towards the advancement and delivery of its mandate in the past decade and will continue to work with stakeholders to explore opportunities and implement initiatives geared towards maximizing the economic value of Nigeria’s gas reserves while transitioning from an oil industry to an integrated oil and gas industry consistent with the FGN’s declaration of this decade as “the decade of gas”.


Articles  ·  Events
AJAOKUTA-KADUNA-KANO(AKK) GAS PIPELINE ECONOMIC BENEFITS IN NIGERIA

The Ajaokuta–Kaduna–Kano Natural Gas Pipeline (AKKP) is a pipeline planned to transport natural gas from Ajaokuta, in Kogi State to Kano in Kano State, through several states and urban centers, as part of the Trans Nigeria Gas Pipeline. Construction of the AKKP commenced in July 2020.

Location:

The pipeline originates in Ajaokuta and proceeds in a general northeasterly direction through Abuja Federal Territory, Kaduna, to end at Kano a total distance of approximately 614 kilometers.

Background:

This pipeline is intended to establish a connection between pipeline networks in the eastern, western and northern regions of Nigeria. The project strives to utilize the country’s abundant natural gas resources to sustainably supply gas to northern Nigeria. The development is expected to reduce the quantity of gas flared in the country’s oil fields and thus improve air quality. The Nigerian National Petroleum Corporation (NNPC), announced tenders for this project in July 2013. The Cabinet of Nigeria approved the project in December 2017.

THE ECONOMIC BENEFITS OF AKK GAS PIPELINE IN NIGERIA

These projects are fundamental to our desire to industrialize and energize the entrepreneurial spirit that is ever present in our population. Enumerating the benefits of the project, billed to be completed in two years,

  1. It will provide gas for generation of power and for gas-based industries which would facilitate the development of new industries.
  2. It will also ensure the revival of moribund industries along transit towns in Kogi State, Abuja (FCT), Niger State, Kaduna State and Kano State.
  3. It has significant job creation potential both direct and indirect, while fostering the development and utilization of local skills and manpower, technology transfer and promotion of local manufacturing.’
  4. Upon completion, the project would enable the injection of 2.2bscf/d of gas into the domestic market and facilitate additional power generation capacity of 3,600MW.

WHAT IS GACN’s IMPACT AS SOLE STRATEGIC GAS AGGREGATOR?

The GACN, in its ten years of operation, has helped to develop the Nigerian domestic gas market. The GACN introduced a standardized template Gas Sales Aggregation Agreement (GSAA) into the market. This template undergoes periodic review by stakeholders to reflect market realities. 85% of the current total domestic gas supply portfolio is now under GACN’s management. GACN has made disbursement of over N136billion gas payment dispute-free through the price aggregation management software. GACN ensured adequate supply to GBIs such as Indorama fertilizer plant and Dangote fertilizer plants. GACN is currently facilitating development of 3 mini Liquefied Natural Gas (LNG) projects for domestic consumption. GACN is also supporting direct gas supply to embedded and captive Independent Power Plants (IPPs) based on 100% payment performance.The volume of operationalized GSAAs as at 2020 stands at 858MMscfd. These are just a few key achievements amongst many.

 

Natural Gas Value Chain Infrastructure for Midstream and Downstream Sector

Sources:

  • https://www.researchgate.net/figure/Fig-A1-Natural-Gas-Value-Chain-Infrastructure-for-Midstream-and-Downstream-Sector_fig5_340638708
  • Read more at: https://www.vanguardngr.com/2020/06/benefits-of-akk-gas-pipeline-project-by-president-muhammadu-buhari/
  • https://en.wikipedia.org/wiki/Ajaokuta%E2%80%93Kaduna%E2%80%93Kano_Natural_Gas_Pipeline

Articles  ·  Events
NETWORK CODE FUNDAMENTALS

The Nigerian Gas Transportation Network Code (NGTNC) or Network Code for short, is a set of rules guiding the use of a gas transportation system; a contractual framework between the Network Operator and the Shippers that provides open and competitive access to gas transportation infrastructure. It was inaugurated by the Honourable Minister of State, Petroleum Resources; His Excellency Timipre Sylva on 10th February 2020 with actual “Go-Live” occurring on 10th August 2020. It enumerates the roles of the Agent, the Shipper among others.

KEY TERMS

Who is the Operator?

The Operator (Transporter) means the owner and/or operator of NGC’s Transportation System including the pipeline systems known as the Escravos-Lagos Pipeline System, the Oben–Ajaokuta pipeline system, the Obiafu/Obrikom-Oben pipeline system and the facilities used to provide services for the conveyance of gas in accordance with the terms of the Network Code. NGC is the licensed Operator.

Who is the Shipper?

The Shipper is any person or persons having reserved capacity on the Transportation System or any part thereof and licensed to carry on business as a gas Shipper. Any gas Buyer or Seller is termed a Shipper.

Who is the Agent?

An Agent under the NGTNC is any entity appointed by the Shippers (Shipper’s Agent) or the Operator (Operator’s Agent) or by both (Shipper’s & Operator’s Agent) to act in the Shipper’s or Operator’s stead respectively with regards to particular or all “Code Communications” on behalf of the principal (Shipper or Operator) with regards to the Network Code. Gas Aggregation Company Nigeria (GACN) Limited is currently licensed as the Network Agent.

 

What is Code Communication?

It is any communication to be given by a Shipper or the Operator (including any notification, application, nomination, confirmation, request, approval, acceptance, invoice or other notice to be given, made or submitted) under the Code.


Page 5 of 8