NNPC Gas Marketing Limited (NGML) has partnered with Transit Gas Nigeria Limited (TGNL) to commission a 150 million standard cubic feet per day (mmscfd) natural gas city gate to deepen access to cost-effective energy for industries in the Southwest region.
The project commissioned on May 9, at Old Lagos-Ijebu Ode Road, Ibefun Ogun State will ensure the safe delivery of gas to various industrial and commercial uses within the Sagamu gas distribution zone.
A natural gas city gate serves as a connection point between the high-pressure interstate natural gas transmission system and the lower-pressure local distribution system that delivers natural gas to homes, businesses, and other end-users in a specific area or region.
In his remarks, Dapo Abiodun, governor of Ogun State said the conclusion of the facility marks another milestone in the history of gas penetration and inclusion in Nigeria and Ogun State.
“Today’s commissioning of Ibefun natural gas city gate will support, drive and complement the administration’s gas mobility projects,” he said.
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“This will be through the introduction of gas-powered mass transit vehicles, and the development of electric motorcycles, all to reduce carbon emissions and add carbon credits as we join other advanced countries in going green.”
According to the governor, this investment will further support the industrial revolution of Ogun State.
“The crucial role gas will play in driving industrial growth in the future becomes particularly appealing, not just for providing energy security needed for continuous production but also reducing energy cost for manufacturers, so they can be more competitive with low carbon emissions,” Abiodun said.
“This great project will reinforce our commitment to deliver innovative solutions that create sustainability efficient energy utilisation for the benefit of the people of Ogun State.”
Nigeria has the largest gas reserve in Africa and the 9th largest globally. The country currently produces 8.5 million billion cubic feet per day with a $50 billion investment opportunity.
Abdulkabir Ahmed, group executive director, of gas and power, Nigerian National Petroleum Company Limited (NNPCL) representing Mele Kyari, GCEO, NNPCL said that in spite of Nigeria’s huge natural gas, they are challenges in utilising it domestically.
“In this regard, it has become imperative for players in the industry to tighten up their belt and ensure that this abandoned resource is put to use domestically,” he said.
“TGNL, a part of Axxela and NGML has partnered to ensure they deepen the usage of domestic gas in Nigeria.”
According to Ahmed, this will promote and integrate the use of gas domestically and generate power for industries which will eventually lead to economic growth and prosperity for the people, not only in Ogun State but also in Nigeria generally.
The executive director added that the natural gas facility will be an additional achievement to the “Decade of Gas” that was launched by President Muhammadu Buhari to ensure the prosperity of Nigeria.
“NGML and Axxela natural gas distribution relationship stand for 20 years. Today, the partnership has connected over 200 industries to natural gas,” Ahmed said.
“This 150 million scfd capacity will create jobs and enhance the current development and propel industrial growth.”
For Bolaji Osunsanya, managing director, of TGNL, the development of the Sagamu gas distribution zone is born out of the need to deliver on a medium to long-term expansion strategy.
“It will broaden our outlet portfolio and strengthen our market base in the energy sector. Our partnership with NGML has continued to create opportunities for both parties to leverage our expertise and resources to develop more infrastructure projects to drive economic growth in Nigeria,” he said.
“This project commissioned today will help deepen natural gas utilitisation in Ogun State and its environs.”
According to the managing director, the gas facility will further spur Ogun State for economic growth by enabling industrialisation within the State, promoting investment and supporting the manufacturing sector.
“It is expected to contribute to job creation and growth for medium size enterprises. Our commitment to safety and environmental sustainability is reflected in every aspect of this facility, just to ensure we follow the best global standards,” he said.
