• Monday, December 23, 2024
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NNPC, US corporation, Exim Bank in talks to finance gas projects

Nigeria will produce 2.2m bpd of oil in 2023 – Kyari

Mele Kyari, Group Managing Director Nigerian National Petroleum Corporation

The Nigerian National Petroleum Company Ltd (NNPC) has opened talks with the United States Finance Corporation and Exim Bank to seek financing for its multibillion-dollar gas projects.

Mele Kyari, group chief executive officer of the NNPC, at the Nigerian International Economic Partnership held in New York on Thursday, said the corporation has met with the and the Exim Bank to source financing for its gas projects.

Nigeria has drawn up an ambitious energy transition plan with the price tag of $410 billion, which requires the bulk of financing coming from developed countries.

“Inclusion (in energy transition) means that we need to be supported,” Kyari said.

The NNPC boss said the country was getting a grant to build baseline carbon emission studies by the United States government and this would be very helpful, echoing the statement by the President.

“Currently, the major source of financing we are having is from the African Exim,” he said.

NNPC secured $ 1 billion financing from the African Exim Bank directed towards fixing its refineries. A condition to secure the financing is that the refineries be run profitably to enable repayment.

Read also: We need N3.4trn to subsidise daily fuel consumption – NNPC

Nigeria has made the argument that gas should be included as a transition fuel and on that basis has drawn up energy transition plans to reach net zero by 2060 that basis is seeking investments to resuscitate abandoned gas projects and build new ones.

Kyari said Nigeria is looking for opportunities to leverage the enormous gas resources in the country to provide the possibility that is required for the energy transition.

It will cost $410 billion to transit, according to the federal government, and huge gas projects like the recently signed Memorandum of Understanding between the NNPC, ECOWAS Commission, and Morocco to deliver pipelines along the African corridor will gulp billions of dollars.

“We are embarking on massive infrastructure and to see how we can deliver the Morocco gas pipeline which will pass through a number of countries to provide a number of securities including bringing people out of poverty and also an opportunity that is there that we are doing also in the domestic market, increasing more gasses in the domestic market,” he said.

The Nigeria-Morocco Gas Pipeline is a 5,600km gas pipeline project, traversing 13 African countries, which, when completed will provide gas from Nigeria to the West African countries up to the Kingdom of Morocco and subsequently to Europe.

Isaac Anyaogu is an Assistant editor and head of the energy and environment desk. He is an award-winning journalist who has written hundreds of reports on Nigeria’s oil and gas industry, energy and environmental policies, regulation and climate change impacts in Africa. He was part of a journalist team that investigated lead acid pollution by an Indian recycler in Nigeria and won the international prize - Fetisov Journalism award in 2020. Mr Anyaogu joined BusinessDay in January 2016 as a multimedia content producer on the energy desk and rose to head the desk in October 2020 after several ground breaking stories and multiple award wining stories. His reporting covers start-ups, companies and markets, financing and regulatory policies in the power sector, oil and gas, renewable energy and environmental sectors He has covered the Niger Delta crises, and corruption in NIgeria’s petroleum product imports. He left the Audit and Consulting firm, OR&C Consultants in 2015 after three years to write for BusinessDay and his background working with financial statements, audit reports and tax consulting assignments significantly benefited his reporting. Mr Anyaogu studied mass communications and Media Studies and has attended several training programmes in Ghana, South Africa and the United States

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