NNPC focuses on building infrastructure, creating liquidity, market linkages
Ben Eguzozie is business a.m. regional lead based in Port Harcourt, providing regional and national coverage for economy, business and finance
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July 7, 2021569 views0 comments
Assures of energy sufficiency, wealth creation for Nigeria
Reiterates 20% equity acquisition in-country refineries
National oil company, the Nigerian National Petroleum Corporation (NNPC), is keeping its vision to build midstream and downstream backbone infrastructure, creating liquidity and providing linkages to markets in the Nigerian oil and gas space.
Mele Kyari, the corporation’s group managing director, said this amid assurances that the NNPC is committed to ensuring effective stewardship of the nation’s hydrocarbon resources to guarantee energy security and drive wealth creation in Nigeria.
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Kyari, delivering a keynote at the 2021 Nigeria Oil and Gas conference and exhibition in Abuja, said the corporation has completed the Escravos-Lagos Pipeline System (ELPS) phase II project, thereby expanding the gas supply channel for domestic gas utilization.
He also added that the oil company has kick-started the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, while the Obiafu-Obrikom-Oben gas pipeline (OB3) project was billed for completion soon.
Kyari explained that NNPC’s vision was to emplace the critical backbone infrastructure, create liquidity and provide the necessary linkage to markets.
Speaking on the topic: “Vision and Priorities for Nigeria’s Energy Transformation,” he said for a nation with a teeming youth population and a developing economy, Nigeria needed the right policies to unlock its huge economic potential, and that NNPC was working towards bridging the energy gap to multiply wealth for its varied stakeholders.
“We see a nation that must integrate by developing midstream and downstream infrastructure as the intersection and bridge to value. We see a nation in need of the right policy framework to attract new investment while encouraging existing players,” Kyari said.
He said NNPC and its partners were harnessing and exploiting the nation’s huge gas potentials, one of which is the $7 billion Nigeria Liquefied Natural Gas (NLNG) Train 7 project, which ground-breaking was done recently. The NLNG Train 7 is believed to be a flagship project expected to increase Nigeria’s LNG production capacity by 35 percent, and seal Nigeria’s position as one of the top LNG nations in the world.
According to Kyari, Nigeria was in the process of also transforming into an LNG-consuming country, while at the same time deepening domestic utilization of Liquefied Petroleum Gas (LPG).
He said a programme for the rehabilitation and upgrading of the existing refineries was on course, while work had already started on the Port Harcourt Refinery Company (PHRC). The Warri Refining and Petrochemical Company Limited (WRPC) and Kaduna Refining and Petrochemical Company Limited (KRPC) would follow later.
Meanwhile, the NNPC group managing director reiterated plans by the corporation to take 20 percent equity in the Dangote Refinery and acquire stakes in other private modular and condensate refineries in the country. The acquisition would cost the corporation $3.8 billion, which it plans to borrow from lenders.
“Our priority is to meet our local fuel demand because that is the right way to go thereby making Nigeria to become the hub of petroleum products supply to other African countries in the years ahead,” Kyari informed.
According to him, NNPC, as a National Oil Company (NOC) has made strategic decisions that would enable Nigeria to be energy sufficient through its partnerships and several business portfolios that would add value to the nation.
He said the recent passage of the Petroleum Industry Bill (PIB) by the National Assembly was an example of how collaboration across political lines can deliver reforms. He assured that the NNPC would sustain engagement with partners to co-create solutions for unique challenges and provide the platform for effective policy engagement.