Oil & Energy

NNPC To Grow Domestic Gas Use By 2022

Published

6 years ago

September 9, 2019

The Nigerian National Petroleum Corporation (NNPC) says it will grow the domestic gas use in the country to five billion cubic feet of gas per day from its current 1.7 billion cubic feet of gas per day by 2022.
Chief Operating Officer, Gas and Power, NNPC, Mr Yusuf Usman, made this known while delivering a paper at the Nigeria International Pipeline Technology and Security Conference in Abuja, recently.
Usman’s paper dwelt on “Strategies for Ensuring Infrastructural Growth for a Robust Gas Industry and Utilization”.
He explained that domestic gas demand was expected to grow to 7.4 billion cubic feet of gas per day by 2027.
“Based on all current known domestic gas supply projects, domestic gas supply is forecast to close the demand by 2021 as we have identified Seven Critical Gas Development Projects (7CGDP) currently being fast tracked to bridge the foreseen supply gap by 2021,” he said
Usman added that the completion of the three major domestic gas transmission systems would add 6.8 billion cubic feet of gas per day capacity.
He added that the 36-inch Escravos to Lagos Pipelines (ELPS) 1 and 2 with 2.2 billion cubic feet per day capacity would be completed by the end of the year.
He said the ongoing East to West connection via the 48-inch Obiafu Obrikom to Oben pipeline (OB3) with 2.4 billion cubic feet per day capacity would be completed by March 2020.
He also said that the 40-inch Ajaokuta, Kaduna to Kano (AKK) gas pipeline with 2.2billion cubic feet per day capacity would be completed by the end of 2022.
Usman said that the AKK, when completed, would unlock 2.2billion cubic feet per day capacity natural gas for the domestic market.
He pointed out that it would also add 3,600 megawatts of power to the national grid, revitalize over 232 industries and create over one million jobs.
“AKK wiIl also support the development of petrochemicals, fertilizer, methanol and other gas based industries that would generate more employment opportunities and facilitate balanced economic growth,” he said.
He added that the NNPC was also putting measures in place to develop five gigawatts of power generation by 2022 as part of efforts to support the current Federal Government aspiration to bridge the power deficit in the country.
Commenting on the strategy to developing gas infrastructure, Usman said the corporation had adopted the project financing scheme for AKK and other gas projects in order to meet the timelines.
He explained that the incorporated joint venture funding model was being adopted for the Assa North-Ohaji South (ANOH) project, describing the model as bankable and capable of boosting Nigeria’s domestic gas supply significantly.
Usman said meeting the gas infrastructure blueprint was, however, challenged by funding, project slippages, security concerns and rising debt from gas off-takers, limiting expansion of the network.

Oil & Energy

Reps C’mitee Moves To Resolve Dangote, NUPENG Dispute

Published

14 hours ago

September 29, 2025

The Tide

The House of Representative on Petroleum Resources (downstream), has pledged to intervene in the ongoing dispute between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), warning that mishandling the issue could destabilize the downstream sector.

Chairman of the Committee, Ikenga Imo Ugochinyere, gave the assurance at the close of a three-day retreat, in Lagos, at the Weekend.

Ugochinyere noted that while Dangote and NUPENG signed a Memorandum of Understanding on September 9 to strengthen workers’ right to unionise, fresh disagreements have since emerged.

He stated that the committee had received multiple submissions from stakeholders adding that it would act in the best interest of both parties.

“If the issue is not well handled, it will create instability in the downstream sector. We must balance labour issues with economic interests,” he stated.

It would be noted that NUPENG had accused the refinery of intimidation, alleging it ordered truck drivers to remove union stickers before loading. Dangote, however, dismissed the claims describing it as “cheap blackmail.”

He also revealed that the committee has reopened its investigation into NNPC Ltd.’s acquisition of OVH Energy Marketing’s downstream assets and refinery upgrade, following a directive from the House after the initial report was rejected for omitting key facts.

“The investigation is distinct from the previous inquiry carried out. The House, therefore, mandated the Downstream Committee to undertake a fresh investigation—with a clear directive to uncover what truly transpired in the OVH acquisition process”, Ugochinyere said.

With the commencement of the investigation, the committee chairman said the general public is invited to make their input before the lawmakers present their recommendations on the floor of the House.

He directed that those with information and submissions should submit them to the clerk of the downstream committee.

Oil & Energy

Increased Oil and Gas: Stakeholders Urge Expansion Of PINL Scope

Published

14 hours ago

September 29, 2025

The Tide

Following the sustained record of increased oil and gas production in recent times, stakeholders from pipeline and crude oil host communities have urged the Federal Government to expand the security contract of Pipeline Infrastructure Nigeria Limited (PINL).

The stakeholders who gave the urge while speaking at the September Engagement, held in PortHarcourt, last Thursday, attributed the increased output in oil and gas production to the positive impact of PINL on oil and gas host communities

President-General, Orashi People’s Congress, Emeni Ibe, expressed happiness with PINL saying “Our people which includes Abua/Odual, Ahoada East and West, Ogba/Egbema/Ndoni have asked me to convey their gratitude for regularly holding this stakeholders meeting”.

“Our area is criss-crossed with several oil pipelines and in the campaign against vandalism, we have agreed to partner with the PINL.

“We are calling on the Federal Government to provide more funds to the company. We are pleased with their trainings and their scholarship for our youths. This is what we are expecting and if these things are done, pipeline vandalism will be a thing of the past.

“PINL is changing the narratives in our area so I join others to pass a vote of confidence on PINL”, Ibe said.

Also speaking, an indigene of Soku, community, Ajenkebiokpomaa Orlu, said his people want the federal government to include the community in the scope of job covered by PINL.

“We have been hearing about PINL in Rivers State and other neighboring communities but it’s like a surprise to us because Soku as a major player in the ooo and gas sector, we are not part of their operations. We are supposed to be part of it as major oil bearing community with the largest gas plant in West Africa and other oil facilities.

“I’m here to tell Federal Government, NNPCL and PINL to include Soku community in their scope of job and mostly for the Federal Government to expand PINL’s scope of work in the area to include Soku oilfield.

Speaking with journalists on the sidelines of the engagement, the General Manager, Community Relations and Stakeholders Engagement, Dr. Akpos Mezeh, explained that Soku Tombia, Rumuji, Ogba, Abha, Gbarain are all host to gas lines “and we have engaged workers from those communities to help go secure the lines”.

He expressed hopes that the Federal Government would expedite action in expanding PINL’s contract to cover those areas.

Mezeh stated; “Soku is a major oil and gas host community and by virtue of the fact that our current contract on TNP does not cover Soku, we’ve been able to cover them based on the limited resources we have and so far we’ve been doing wonderfully well there courtesy of the support we get from the community and there has been no incident of vandalism in Soku.

“We are calling on the Federal Government to expedite action on the formalising the expansion that we are already doing to cover the areas outside our primary mandate.

“We have Soku, Tombia, Rumuji, Ogba, Abha, Gbarain which host gas lines and we have engaged workers from those communities to help go secure the lines and so we hope that the Federal Government would expedite action in expanding our contract to cover those areas.

“We have expanded our operations into gas and we are into the sixth month and the results is clear and from the report of NUPRC, gas production has increased.

“We’ve done a lot to ensure that gas facilities are given adequate protection. We have engaged more workers from the communities where gas lines are criss-crossing and although that’s not our primary area of responsibility but we are doing that as a duty call to ensure that we support the Federal Government and that’s why we are calling on the Federal Government to formalise the work that we are already doing”.

Oil & Energy

Digital Technology Key To Nigeria’s Oil, Gas Future

Published

14 hours ago

September 29, 2025

The Tide

Experts in the oil and gas industry have said that the adoption of digital technologies would tackle inefficiencies and drive sustainable growth in the energy sector.

The experts made the remark at the 2025 Press Week Lecture and Symposium organised by the Nigeria Union of Journalists (NUJ), News Agency of Nigeria (NAN) Chapel, Lagos,

With the theme of the symposium as ‘Transforming Energy: The Digital Evolution of Oil and Gas’, he gathering drew top industry players, media leaders, traditional rulers, students, and security officials for a wide-ranging dialogue on the future of Nigeria’s most vital industry.

Chairman of the Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, highlighted the role of digital solutions across exploration, drilling, production, and other oil services.

Represented by the Vice Chairman, Obi Uzu, Ogunsanya noted that Nigeria’s oil production had risen to about 1.7 million barrels per day and was expected to reach two million barrels soon.

Ogunsanya emphasised that increased production would strengthen the naira and fund key infrastructure projects, such as railway networks connecting Lagos to northern, eastern, and southern Nigeria, without excessive borrowing.

He stressed the importance of using oil revenue to sustain national development rather than relying heavily on loans, which undermine financial independence.

Comparing Nigeria to Norway, Ogunsanya explained how the Nordic country had prudently saved and invested oil earnings into education, infrastructure, and long-term development, in contrast to the nation’s monthly revenue distribution system.

Chief Executive Officer (CEO) and Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Using, represented by the Secretary of the Association, Ms Ogechi Nkwoji, highlighted the urgent need for stakeholders and regulators in the sector to embrace digital technologies.

According to him, digital evolution can boost operational efficiency, reduce costs, enhance safety, and align with sustainability goals.

Isong pointed out that the downstream energy sector forms the backbone of Nigeria’s economy saying “When the downstream system functions well, commerce thrives, hospitals operate, and markets stay open. When it fails, chaos and hardship follow immediately,” he said.

He identified challenges such as price volatility, equipment failures, fuel losses, fraud, and environmental risks, linking them to aging infrastructure, poor record-keeping, and skill gaps.

According to Isong, the solution lies in integrated digital tools such as sensors, automation, analytics, and secure transaction systems to monitor refining, storage, distribution, and retail activities.

He highlighted key technologies including IoT forecourt automation for real-time pump activity and sales tracking, remote pricing and reconciliation systems at retail fuel stations, AI-powered pipeline leak detection, terminal automation for depot operations, digital tank gauging, and predictive maintenance.

NUJ-NAN Chapel Chairman, Yunus Yusuf, urged all stakeholders to leverage digital technology for a more transparent, efficient, and sustainable energy future.

He emphasised deploying digital tools to drive sustainability, empower communities, and reshape Nigeria’s oil and gas landscape.