Kaduna, NNPC sign MoU on gas supply

The Kaduna state government has signed a Memorandum of Understanding (MOU) with the Nigerian National Petroleum Corporation (NNPC) and the Gas Aggregation Company of Nigeria (GACN) to expand the supply and utilisation of gas in the state.


Speaking during the event at Sir Kashim Ibrahim House, Kaduna on Thursday, Governor Nasir el-Rufai said that Kaduna state was ready for gas supply and welcomes the project as it boosts the availability of a significant additional source of energy for businesses and residents in the state.


According to el-Rufai, “it is a welcome boost to our investment and job creation strategy. It will create jobs and provide skills for artisans who will work on the gas pipelines and associated infrastructure. Beyond that, this project will power the industries that have responded with enthusiasm to our investment promotion campaign.


“Kaduna state government has since 2015 worked to create two new industrial areas; the Green Agro-Allied Industrial Zone (GAAIZ) in Chikun local government, along the Kaduna-Abuja highway, while the Green Economic Zone (GEZ) is in Igabi local government area. GAAIZ is already hosting like the Olam project, the fertiliser plant of OCP of Morocco and DPAN, the joint venture between Dangote Industries and Peugeot for vehicle assembly. 
“The African Development Bank disclosed that it will be financing our Special Agro-Processing Zone within the GAAIZ. The Green Economic Zone is being developed as an industrial park for light manufacturing industries. Gas provides a cost-effective option for powering factories, homes and vehicles. Our industrial parks provide clear evidence that Kaduna is ready for gas. 


“This gas expansion project will only attract more business customers. This gas project will also help expand power supply capacity and options in Kaduna state. It will provide feedstock for the 215MW power plant in Kudenda. The Kaduna state government will also locate an 84MW power plant in Kudenda, also to be powered by gas. The combined effect of these two power plants will make power supply more reliable in Kaduna state.” 
El-Rufai expressed gratitude to Malam Mele Kyari and the NNPC team for the remarkable developmental initiative and the evident zeal of the Gas Aggregation Company of Nigeria to deliver the gas project in Kaduna state. 
The Group Managing Director of NNPC, Malam Mele Kyari, said the NNPC’s focus was to deliver gas into the domestic market.


“We know that it is the game changer for our country, particularly more so for Kaduna state. The Ajaokuta-Kaduna-Kano gas pipeline will be delivered on schedule,” Kyari said. 
The MoU signing event was attended by the deputy governor of Kaduna state, Dr Hadiza Balarabe, senior KDSG officials, the Group Managing Director of NNPC, Malam Mele Kyari, the GED Gas and Power NNPC, AbdulKabir Ahmed, the GED Upstream NNPC, Adokiye Tombomieye, and the Managing Director GACN, Olalekan Ogunleye.