Kaduna signs deal to plug into AKK pipeline

Sopuruchi Onwuka

Kaduna has become the first state in the northern part of the country to officially enter a gas supply deal with the Nigerian National Petroleum Corporation (NNPC) and private firms under the ongoing programme to deepen domestic gas utilization.

The state government had on Thursday hosted the leadership of NNPC at Sir Kashim Ibrahim House in Kaduna where both parties signed a Memorandum of Understanding (MoU) for utilization and expansion of gas supply in the state.

The gas supply which is expected to flow from the Ajaokuta-Kaduna-Kano (AKK) pipeline currently under project stages will be used by the Kaduna state government to reactivate manufacturing activities in the state and create jobs for teeming youths.

The event which was facilitated by the Gas Aggregation Company of Nigeria (GACN) would ensure long-term involvement and support of Kaduna State Government and key gas sector players such as the Nigerian Gas Company (NGC), the Nigerian Gas Marketing Company (NGMC) and virtual pipeline companies to provide gas supply assurance to industries within the state on competitive terms. 

Governor Nasiru el-Rufai stated at the event that Kaduna State Government was delighted with the AKK pipeline project and the prospect of having an additional energy source to power businesses in the state.

“We wholeheartedly welcome this project. Gas provides a cost-effective option for powering factories, homes and vehicles. For the Kaduna State Government, this project is a welcome boost to our investment and job creation strategy. It will create jobs and provide skills for artisans who will work on the gas pipelines and associated infrastructure. Beyond that, this project will power the industries that have responded with enthusiasm to our investment promotion campaign,” Governor el-Rufai stated.

He particularly thanked the NNPC and the GACN for the gas utilization and expansion initiative and their zeal to deliver the full objectives of the programme.

“Let there be no doubt that the Kaduna State Government is committed to this MoU and the realization of its goals in the interest of the people of Kaduna State,” Governor el-Rufai declared.

Mallam Nasiru el-Rufai signed the MoU on behalf of the state government while Mallam Mele Kyari s signed on behalf of NNPC.

Mallam Kyari pointed out that Kaduna state has played key roles in energy supply to the northern parts of the country, noting that the state hosts the corporation’s facilities such as the refinery complex, the storage depot, the ongoing AKK gas pipeline and Independent Power Plant Projects (IPPs). 

He said NNPC would continue to engage with stakeholders and partners to secure early market and ensure that the economic benefits of the AKK gas pipeline were maximized.

“NNPC is leading this coordinated effort with State Governments and private sector investors to develop demand framework for immediate and long-term gas supply solutions ahead of the completion of the AKK gas pipeline project,” he noted.

“We all know that Kaduna used to be a hub when it comes to industries. It is our hope that this MoU signing will help provide the gas needed for some of those industries to come back to life,” Kyari stated.

He said the corporation was committed to the commercialization of Nigeria’s abundant natural gas resources to support balanced economic growth and job creation across the country, stressing that as the world transits to low carbon energy, the nation’s huge gas resources would continue to be an important source of clean energy for today and the future.

Mallam Kyari said NNPC was leading coordinated effort with state governments and private sector investors to develop demand framework for immediate and long-term gas supply solutions ahead of the completion of the AKK gas pipeline project.

“There is no better way of making cheaper and cleaner energy than delivering gas into the domestic market,” he declared.