Gas Supply

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GACN’S PARTICIPATION IN RMAFC GAS SENSITIZATION “FOLLOW-UP” FORUM IN BAYELSA

Sequel to the gas stakeholder’s sensitisation forum by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) in Imo state, Gas Aggregation Company Nigeria Limited (GACN), represented by Ruqaiyah Saidu Abubakar and Dantala Wright, attended the second edition of the 2022 gas sensitisation forum (the “Follow-Up Forum”) held at Chief Harold Dappa-Biriye Conference Hall, Golden Tulip Hotel, Onopa Yenagoa, Bayelsa State. The theme was “INSTITUTIONALISATION OF DIVERSIFICATION OF THE ECONOMY USING NATURAL GAS,” and was held from 12th to 14th April 2022.

The Bayelsa State Governor, His Excellency, Senator Douye Diri, represented his Deputy, Senator Lawrence Ewhrudjakpo, commended RMAFC for choosing Bayelsa State to host the Follow-Up Forum as Bayelsa State is one of the highest producers of gas nationwide with over 60% feed gas to Bonny LNG sourced from Bayelsa State. Despite this abundance of gas, and coupled with the challenge of gas flaring particularly affecting farming communities, he concluded that Bayelsa State is yet to adequately benefit from the wealth of its natural resources.

Stakeholders presented papers and gave useful insight on the use of gas as a mainstay for revenue generation. The topics included:

  1. Harnessing the Abundant Gas Resources for Enhanced Revenue Generation by Prof. Festus Awara, University of Calabar;
  2. The Role of Nigerian Gas Marketing Company (NGMC) in Enhancing Domestic Gas Utilisation by Engr Sizah T. Jacob;
  3. GACN as a Vehicle for Gas Supply to the Domestic Market by Dantala Wright; and
  4. Gas Hubs as a Catalyst for the Power Sector Development by Engineer Vice Onyemepu of Zakhem Construction Nigeria Limited.

GACN’s presentation was well received by the participants and concluded with a Q&A session where participants were informed about GACN’s ongoing engagements with projects and key players in Bayelsa State.

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GACN’S PARTICIPATION IN RMAFC GAS SENSITIZATION FORUM – IMO

Gas Aggregation Company Nigeria Limited (GACN), represented by Dantala Wright and Chioma Ogbobe, attended the gas stakeholder’s sensitization forum (the “Forum”) hosted by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Owerri, Imo state on 23rd and 24th March 2022. The aim of the Forum was to sensitize stakeholders on gas commercialization and gas penetration of the abundant natural gas resources in Nigeria in order to further diversify the Nigerian economy.

 

Honorable Patrick N. Mgbebu, Chairman, Gas Monitoring Committee, emphasized in his opening remark, that the Forum had become expedient because of the need to diversify the nation’s economy. The Imo State Governor, His Excellency Hope Uzodinma, represented by his Deputy, Placid Njoku, stated in his speech that Imo State has sufficient gas resources that need to be harnessed. He stressed that revenue from crude oil had been on the decline, making the Forum very timely, as there is a need to look for more sustainable means of revenue.

Participants, including GACN’s representatives, expressed their satisfaction at the organization of the Forum which they described as timely, outstanding, engaging, insightful and educative. They also expressed confidence that the Forum was a suitable bouncing off point for further diversification of the Nigerian economy through the use of the country’s abundant gas resources.

GACN’s representatives presented a paper titled “GACN as a Vehicle for Gas Supply to the Domestic Market” at the Forum, outlining GACN’s efforts in furthering gas commercialisation, increasing gas penetration and stimulating gas driven industrialisation, which was well received by the participants.

Participants were provided with a comprehensive description of the initiatives currently being undertaken by GACN and were guided on further gas-related opportunities across the value chain – upstream, midstream, and downstream.

GACN concluded by emphasizing its value proposition as the “one stop shop” for nationwide gas commercialization and utilization expansion drive.

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GACN Facilitates Gas Supply to Dangote Fertilizer Plant

Gas Aggregation Company Nigeria Limited (GACN), on Wednesday, facilitated the signing of a Gas Sale and Aggregation Agreement (GSAA) for the supply of natural gas by the joint venture comprising the Nigerian National Petroleum Corporation (NNPC), Shell Petroleum Development Company of Nigeria (SPDC), TotalEnergies EP Nigeria Limited (Total), and Nigerian Agip Oil Company Limited (NAOC) to Dangote Fertiliser Limited (DFL). The GSAA, which also has GACN as a party, is another milestone in the aggregator’s efforts aimed at increasing natural gas utilization in the Nigerian domestic market.

DFL’s fertilizer plant at Ibeju Lekki, Lagos State, is a flagship mega fertilizer project intended to support the Federal Government’s drive to grow the agricultural sector and in turn improve the Nigerian economy.

The GSAA, once operationalized, will see DFL supplied with up to 70 million standard cubic feet per day of natural gas to ramp up operations of the fertilizer plant and save Nigeria roughly USD 1.8 billion in foreign exchange.

Natural gas is an essential feedstock used in the production of fertilizers. The GSAA is expected to ensure the accessibility of natural gas to fulfill this purpose.

The signing of the agreement coincided with the ongoing fifth Nigeria International Energy Summit (NIES 2022) with the theme “Revitalising the Industry: Future Fuels and Energy Transition”; and the release of a Domestic Gas Demand Requirement of 4.4 billion standard cubic feet by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

With over 206 trillion cubic feet of natural gas, Nigeria is considered one of Africa’s largest in hydrocarbon exploration and production. Despite these huge gas reserves, the exploitation of this natural resource remains very low despite rising demand.

During the signing ceremony, the President of Dangote Group, Alhaji Aliko Dangote described the signing of the agreement as an important milestone, noting that the additional gas supply to the fertilizer project would save Nigeria as high as about $1.8 billion in foreign exchange in light of the ongoing energy crisis. He added that save for Egypt, Nigeria has an unparalleled capacity to become the topmost fertilizer producer in Africa.

Mele Kyari, Group Managing Director of NNPC mentioned that the contract having been concluded in a relatively short period signals the importance of natural gas to the production of fertilizer and by extension, the agro-economic growth of Nigeria.

“As you are aware, Dangote Fertilizer is one of the biggest producers of fertilizer and this deal, which is to offer 70mmscf per day to Dangote Fertilizer by the JV, will contribute to the surge of fertilizer production in Nigeria. Of course, it will tremendously be positive to our agro-economy,” Kyari said.

“But more importantly, it is a platform that will increase local production of fertilizer in our country.

“As you may be aware, it is government’s drive to ensure that we become self-sufficient in the production of fertilizer in the country, and specifically for this year’s zero import of fertilization in the country.

“Currently, Dangote group provides about 65 percent of all domestic production of fertilizer. And we are happy to sign the Gas Supply Agreement with them,” Kyari added.

Osagie Okunbor, Managing Director of SPDC and Country Chair echoed this, commending the fellow signatories to the contract for their hard work and noting its importance to the development of Nigeria.

The Managing director of GACN, Mr. Olalekan Ogunleye also signed the agreement on behalf of GACN.