Nigerian Gas

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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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THE 2021 GAS SECTOR STAKEHOLDERS’ FORUM

The mandate of Gas Aggregation Company Nigeria Limited (“GACN”) as spelt out in the 2008 National Gas Supply and Pricing Policy is to drive gas commercialization within the domestic market in the pursuit of a sustainable National economic growth path. To this end, GACN organized the 2021 gas sector stakeholders’ forum themed “Optimizing the Economic Development Capacity of the Ajaokuta-Kaduna-Kano (“AKK”’ Gas Pipeline Project” on 28th and 29th July, 2021(“the Forum”) at the Afficent Event Center, Kano, Kano State, with the objective of sensitizing the business community in the AKK host States and potential investors on the economic benefits of the AKK pipeline while also presenting interim (virtual) gas supply solutions pending the completion of the AKK pipeline.

The Forum recorded a remarkable attendance with a cumulative attendance (physical and virtual) of over a thousand (1000) participants, and with high-profile representations from the Federal Government, the AKK State Governments, gas producers, transporters, offtakers (power producers, LDCs, GBIs, mini-LNG, etc.), financiers, among others.

In his welcome address, the chairman of the Board of GACN, Engr. Mansur Sambo emphasized that the AKK Pipeline is poised to restore the vibrancy of the industrial sector and stir commercial activities in the North especially in Kano state.

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While declaring the Forum open, President Muhammadu Buhari who was represented by the Minister of State for Petroleum Resources, Chief Timipre Sylva noted that the AKK Forum is geared towards sensitizing the northern part of Nigeria about the economic benefits of the AKK Pipeline. He noted that the commissioning of the AKK Pipeline will come with various economic opportunities including revamping of moribund industries within the AKK states and other states around the corridors of the AKK Pipeline. Notably, he seized the opportunity to announce the reduction of the price of gas-to-power from $2.50|Mscf to $2.18|Mscf with immediate effect. He added that, with the downward review in gas pricing to the power sector, Nigeria may henceforth experience improvement in electricity supply.

In his keynote address, the Group Managing Director (“GMD”) of the Nigerian National Petroleum Corporation (“NNPC”), Mallam Mele Kolo Kyari emphasized the significance of gas to the economic growth of the AKK States and the Nation at large. He further assured the Nation that the Federal Government of Nigeria (“FGN”) and NNPC are working assiduously to ensure the completion and commissioning of the pipeline within the project completion timeline of 2023.

While delivering his goodwill message, the Emir of Kano, Alhaji Aminu Ado Bayero, commended the FGN for the progress made towards the completion of the AKK Pipeline. He noted that the AKK Pipeline would stimulate socio-economic activities in Kano state. He further called on well-meaning Nigerians and foreign investors to continue to execute similar development projects.

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While highlighting the investment opportunities in Kano State, the governor of Kano State, Dr. Umar Ganduje noted that the Kano State Government has continued to prioritise peace and stability as part of its strategy to engender investment. He further noted that there are over 160 functional industries in the Bompai, Tokarawa, Challawa and Sharada industrial layouts, however, over 201 industries are moribund. He added that these industries are set to be revived with the impending commissioning of the AKK pipeline while noting that Kano State will regain its status as the biggest commercial hub in West Africa.

The governments of Kaduna, Nassarawa, Niger and Kogi States while speaking on gas development opportunities and showcasing their respective States, outlined investment attractions and considerations in their respective States.

The Forum also featured a dynamic collection of speakers who took to the stage to deliver addresses and papers on topical issues. Notably, the President and CEO of Dangote Group, Alhaji Aliko Dangote while speaking on “Concrete Steps to Optimize the Benefits of the AKK” noted that without the AKK Pipeline, the FGN may not be able to meet its target of creating 100 million jobs in 10 years. The Honourable Minister of Finance, the Executive Secretary of the Nigerian Content Development & Monitoring Board, the Director, Department of Petroleum Resources, the Honourable Minister for Power, the President of the Manufacturers Association of Nigeria, the MD of Nigerian Gas Company Limited, the MD of Nigerian Gas Marketing Company Limited, the MD of ND Western Limited and other esteemed speakers were also present to lend their voices to the economic benefits of the AKK Pipeline.

The Forum also featured other activities including the Business Engagement Session as well as the exhibitions by industry stakeholders. On Wednesday, 28th July, 2021, there was also the Cultural Night which was organized to celebrate and connect guests to the culture and heritage of the Northern region.

The Managing Director and CEO of GACN, Mr. Olalekan Ogunleye while giving his closing remarks, assured Stakeholders that GACN will continue to engage with Stakeholders to ensure optimization of gas utilization opportunities. He added that a framework and an action plan for optimizing the economic development contribution of the AKK project has been developed for implementation. He expressed his gratitude to the Board, Management and Staff of GACN as well as the FGN, Sponsors, the AKK State governments and other industry Stakeholders for their enormous contributions towards the success of the Forum and the activities of GACN.

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MEDIA CONTENTS ON POST NIPS CONFERENCE

The Nigerian International Petroleum Summit hosted a conference from 5th June,2021 through 10th June, 2021 at the International Conference Centre, Abuja. The theme of the conference was from “Crisis to opportunities-new approaches to the future of hydrocarbon” and it was very elaborate and successful. Dignitaries from all over the world attended and participated in sessions on diverse topics on Gas, these topics were discussed, elaborated and dissected on the emerging opportunities on gas and how this can be leverage to accelerate these opportunities. Solutions were proffered by taking note of the impending challenges within the sector.

“GACN has become a one- stop-shop for Gas commercialization and value expansion in the domestic Gas sector.” 

GACN shared a booth with the Ministry of Petroleum Resources where its corporate information and fliers were show cased and an interesting lecture about the role GACN play in the domestic markets was given by Mr Donald Iloba. He also Enlightened the public on the July AKK Forum on the 29th July,2021 at kano, including the benefits of this important economic development initiative.

The CEO of GACN Mr Olalekan Ogunleye actively took part as a panellist at the conference. He explained the current role and achievements of GACN while concluding that indeed, GACN has become a one- stop-shop for Gas commercialization and value expansion in the domestic Gas sector.

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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.

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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.

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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

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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.

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GACN ACHIEVES YET ANOTHER POSITIVE RECOGNITION OF ITS CONTRIBUTION TO THE GAS SECTOR

Featured in Business Day Publication Celebrating 50 Major Indigenous oil Majors in Nigeria.

Businessday, Nigeria leading and influential business and financial daily, has published a landmark edition aimed at celebrating 50 major indigenous players in the Nation’s oil and gas industry.

Businessday stated that GACN was selected having closely monitored the company’s impressive corporate governance practices, its track record and reputation in the oil and gas sector, as well as its flexible adaption to emerging challenges and demands of the volatile oil and gas markets.

GACN management considers the honour a charge to do more and bring to bear GACN’s culture of excellence in all facets of its Gas sector initiatives and activities.

In a special report dated 1st April 2021 captioned “GACN at a Glance’’, The Newspaper highlighted GACN’s notable key achievements as well as new initiatives.

GACN Considers that this recognition is due to the consistent support of its stakeholders as well as key oil and Gas industry leaders such as The Honourable Minister of State for Petroleum H.E, Chief Timipre Sylva, the GMD NNPC, Mallam Mele Kyari, and the Nigerian Gas Association.

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