NAPE Says Pipeline Infrastructure To Pull Stranded Gas Deposits In N /Delta 

Yemisi Izuora

President of the Nigerian Association of Petroleum Explorationists, NAPE, Alex Tarka, has said that oil exploration has significantly opened up the country’s huge gas potentials that can readily support government’s industrialisation initiative.

Tarka, said that declaration of 2020 as Nigeria’s year of gas by Minister of state for petroleum resources Timipre Sylva, is essentially challenging the industry to provide investment support in the area of infrastructure to enhance gas evacuation to industrial hubs and boost power generation.

In a media presentation to herald NAPE’s upcoming 38th Annual Conference and Exhibition in Lagos, the president made a classic example of the Ajaokuta–Kaduna–Kano Natural Gas Pipeline,  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.

The 614km pipeline represents the phase one of the 1,300km-long Trans-Nigerian Gas Pipeline (TNGP) project.The TNGP project forms part of the broader 4,401km-long Trans-Saharan Gas Pipeline (TSGP), which will export natural gas to customers in Europe.Expected to boost domestic natural gas utilisation for Nigeria’s economic development, the AKK pipeline will run from Ajaokuta, in Kogi State and traverse Abuja (FCT), Niger, Kaduna and terminate at Kano.

The $2.8 billion project would unlock 2.2 billion cubic feet of gas to the domestic market as well as support the addition of 3,600MW of power to the national grid. About 85 per cent  of the capital cost for the project will be funded by the Industrial and Commercial Bank of China (ICBC), Bank of China, and Infrastructure Bank of China. Sinosure, China’s Export Credit Agency (ECA), will provide insurance cover.

The remaining 15 per cent  for project cost is planned to be funded by the contractors that include Oilserve/Oando consortium, as well as Brentex/China Petroleum Pipeline (CPP) Bureau consortium.The project will have the capacity to transport 3,500 million metric standard cubic feet per day (mmscfd) of dehydrated wet gas from several gas gathering projects located in southern Nigeria.

Nigeria has some of Africa’s largest reserves of oil and natural gas, giving it a

resource foundation to build a prosperous economy for its growing population of

around 200 million people.

The country makes over 90 per cent  of its export earnings and about 70 per cent  of government revenue from the oil and gas industry.

Tarka, during the presentation however,  observef that development is held back by a lack of infrastructure adding that intermittent power from the electricity grid causes power shortages in urban as well as rural areas

and the need for back-up generators adds to the cost of energy.

He said that natural gas and off-grid renewable energy projects are proving a new way forward for Nigeria to power its homes and businesses.

Tarka informed that most assets in the Niger Delta have huge gas deposits and are stranded due to dearth of infrastructure to evacuate such huge leap.

Because in the past the country did not place econo

Add Comment