Oil Industry

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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.

Articles  ·  Publications
BIG DATA ANALYTICS IN THE OIL AND GAS INDUSTRY

Recent technological improvements have resulted in the daily generation of massive datasets in the oil and gas industry. Applying advanced analytics and artificial intelligence provides oil and gas companies the ability to identify trends and predict events throughout processes. This will enable quick response to disruptions and improve efficiencies.

“Big data analytics is the use of advanced analytic techniques against very large, diverse big data sets that include structured, semi-structured, and unstructured data, from different sources, and in different sizes from terabytes to zettabytes” [1].

What is Big Data? It can simply be defined as unstructured (not organized and text-heavy) and multi-structured data (including different data formats resulting from people/machines interactions) [2].

Big data offers numerous opportunities for businesses, whether used independently or with existing traditional data. Data scientists, analysts, researchers, and business users can leverage these new data sources for advanced analytics that deliver deeper insights and power innovative big data applications. 

Some common techniques include data mining, text analytics, predictive analytics, data visualization, AI, machine learning, statistics, and natural language processing [3]. To handle the volume of data being generated today, open-source software such as Apache, Hadoop, Apache Spark, entire Hadoop ecosystem are designed to ensure flexible data processing and storage [4].

Characteristics of Big data include Volume, Veracity, Velocity, Value, and Variety. See the image below. 

 

Figure 1 Characteristics of Big Data (https://www.edureka.co/blog/what-is-big-data/)

Application of Big data Analytics in the Industry

In the quest to search for what lies below the surface, oil and gas companies have been exposed to large amounts of data. They have complex systems that have evolved over time and now contain disparate data sets. Big data analytics can play a major role in improving operations and productivity across the industry value chain as follows:

  • Machine learning tools which are best suited for analyzing seismic data can reveal relationships between recorded data
  • Data gathered from different operations through drilling can be applied to conduct various analyses from scheduling to drilling operations [3] thereby improvingdrilling performance.
  • Companies in the business of making big data technologies can develop reservoir management applications. This can be utilized to get timely and actionable information regarding changes in reservoir pressure, temperature, and flow [4].
  • In production engineering, big data analytics can optimize the performance of production pumps.
  • Big Data analytics manages risks and enhances safety by improving oil and gas occupational safety.
  • Predictive analytics can be usedto reduce downtime and maintenance costs of oil refining equipment, consequently improving asset management.

GACN, as Nigeria’s strategic gas aggregator, continues to explore avenues for leveraging predictive analytics statistical techniques in key activities like price aggregation, gas portfolio management, and network code agency services, to make predictions, create reports and inform key decisions regarding gas pricing, DGSO (domestic gas supply obligation) performance, gas demand trends, portfolio growth projections, etc.

The transition towards implementing big data technologies in work operations may not be easy for many oil companies because of lack of expertise and rigidity towards accepting new work practices but once they get around the limitations, they will reap its full benefits.

In conclusion, data is just like crude; it is valuable, but if unrefined it cannot be put to good use.

Sources

[1]:https://www.ibm.com/analytics/hadoop/big-data-analytics

[2]:https://www.dbjournal.ro/archive/15/15_4.pdf

[3]:https://www.ibm.com/analytics/hadoop/big-data-analytics

[4]:https://www.ibm.com/analytics/hadoop/big-data-analytics

[5]:https://www.sciencedirect.com/science/article/pii/S2405656118301421#:~:text=Analyzing%20seismic%20and%20micro%2Dseismic,and%20improved%20occupational%20safety%20are

[6]:https://www.sciencedirect.com/science/article/pii/S2405656118301421#:~:text=Analyzing%20seismic%20and%20micro%2Dseismic,and%20improved%20occupational%20safety%20are