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Tag: Gas Pipeline

  • Gas Pipeline: FG, Morocco discuss final investment decision

    Gas Pipeline: FG, Morocco discuss final investment decision

    The Federal Government has intensified discussions with the Kingdom of Morocco to fast-track the process of achieving the Final Investment Decision (FID) on the Nigeria-Morocco Gas Pipeline project.

    The discussion held on the sidelines of a meeting between the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, and Moroccan Minister of Energy Transition and Sustainable Development, Ms. Leila Benali.

    It was anchored by the Nigerian National Petroleum Company Limited’s (NNPC Ltd), Executive Vice President, Gas, Power and New Energy, Mr Olalekan Ogunleye and the Director-General, Morocco National Office of Hydrocarbons and Mines (ONHYM), Mme Benkhadra.

    This is contained in a statement by the NNPC Ltd Chief Corporate Communications Officer, Olufemi Soneye,  on Thursday in Abuja.

    Soneye said the talks focused on how to drive the partnership between the two countries to accelerate the Nigeria-Morocco Gas Pipeline Project.

    This, he said was in line with the series of Memoranda of Understandings (MoUs) signed between the two countries in Abuja in 2022.

    He said both parties emphasised its strategic importance to the two countries and the entire African continent, and the need to drive toward its completion expeditiously in line with the objective of stemming energy poverty on the continent.

    Recall that the Cooperation Agreement for the 48″ x 5,300km pipeline from Nigeria to Dhakia (Morocco) and 1,700km from Dhakia to Northern Morocco was signed in 2017.

    It has a capacity of 30 billion cubic meter (bcm) per year (equivalent of 3.0 billion standard cubic feet of gas per day).

    The pipeline would traverse Republic of Benin, Togo, Ghana, Cote d’Ivoire, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, Mauritania, and terminate in Morocco with a spur to Spain.

    Due to the international nature of the project, the ECOWAS Commission is saddled with the responsibility to facilitate inter-governmental treaty and host government agreements, establishment of Pipeline Higher Authority, and alignment with AU, UN and other international bodies.

    The project, among other things, will help drive the monetisation of Nigeria’s gas resources, maintain NNPC Ltd.’s energy leadership in Africa, and promote economic and regional cooperation among African Countries.

    The minister had in Nov. 2023 received envoys from Morocco, led by its Ambassador to Nigeria, Moha Ou Ali Tagma for a bilateral discussion on cooperation and commitment towards finalising the project.

  • NIPCO set to connect Lekki Free Trade Zone with gas pipeline

    NIPCO set to connect Lekki Free Trade Zone with gas pipeline

    NIPCO Gas Ltd. has signed an agreement with the NNPC Gas Marketing Ltd. (NGML) and Lekki Free Zone Development Company (LFZDC) to build a gas pipeline.

    The gas pipeline, which is expected to be completed in the next six months, is planned to supply gas to the Lekki Free Zone and feed a 24 Mega Watts (MW) power plant in the axis.

    Speaking at the signing of the MOU in Lagos on Sunday, the Managing Director, NIPCO Gas, Mr Nagendra Verma, said the pact would aid smooth distribution of gas to Lekki area of Lagos State.

    “Our intention is to supply gas, which is economical, cheaper and environmentally friendly.

    “It will also enhance efficiency of equipment and ultimately boost the economy of this country.

    “We are developing gas infrastructure to meet the power requirement of the industries,” said Verma.

    According to him, this business engagement will attract more industries to set up their facilities within LFZDC, which will not only support the consortium, but also develop the Free Zone area.

    “This is also going to boost the industrialisation and employment opportunities in Lekki area, which in turn will boost the economy of the country.

    “We believe that the collaboration between NGML-NIPCO and LFZDC shall attracts industries, as the free zone has many advantages like proximity to the sea-port and export promotion zone advantages.

    “It will also improve road connectivity, hence providing better logistics for movement of raw materials or finished products.

    “We feel really happy to be associated with this project, and would like to thank NNPC Gas Marketing Ltd. for making NIPCO Gas their preferred partner, and thanks also to LFZDC for partnering with the NGML-NIPCO Consortium,” he said.

    The NIPCO boss said Nipco Gas pioneered Compressed Natural Gas (CNG) supply in Nigeria.

    He added that NIPCO Gas had natural gas distribution network in Benin City, Edo, and was supplying gas to industries for their power and fuel requirement.

    “Presently 7 CNG stations in Edo, 1 CNG station in Delta, 1 CNG station in Ogun and 1 CNG station in Kogi are operational,” he said.

    Also, Managing Director, NGML, Mr Justin Ezeala, said the company partnered NIPCO because it was a reliable firm and an industry leader in pipeline laying.

    “We appreciate the LFZDC for its confidence in us and we will monitor the process to ensure a fruitful project,” he said.

    Meanwhile, Managing Director, LFZDC, Dai Shunfa, said the company had been in need of sufficient gas supply for many years.

    “We negotiated the agreement with NIPCO and NGML. It has become reality today.

    “I believe this is a win-win situation for the parties. This will be a key facility for us,” said Shunfa.

    Shunfa said some equipment had already been procured for the project and would be moved to site immediately after the signing ceremony.

    The News Agency of Nigeria reports that the proposed gas infrastructure development will enhance business development in Ibeju Lekki community and also boost economic growth in Lagos.

  • U.S. threatens to shutdown gas pipeline project if Russia invades Ukraine

    U.S. threatens to shutdown gas pipeline project if Russia invades Ukraine

    The U.S. government is once again threatening Russia with the shutdown of the German-Russian Nord Stream 2 gas pipeline in the event of an invasion of Ukraine.

    U.S. President Joe Biden’s National Security Advisor Jake Sullivan issued the threat in an interview with broadcaster NBC on Sunday.

    “If Russia invades Ukraine, one way or another Nord Stream 2 will not move forward and Russia understands that we [have] co-ordinated with our allies,” Sullivan said.

    Asked if German Chancellor Olaf Scholz would publicly pledge such a measure during his inaugural visit to Washington on Monday, Sullivan said: “I’ll let the German chancellor speak for himself.”

    Doubts over the trans-Atlantic alliance have emerged in part due to Berlin’s adherence to the Nord Stream 2 pipeline project with Russia, which the U.S. and Eastern European nations have strongly criticised.