Business Hilights
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20-year gas sale aggregation deal with Total, others’ll grow domestic use

Energy analysts have started weighing the imports of the recent pact sealed between the Nigerian National Petroleum Corporation (NNPC), Total Exploration and Production Nigeria, Gas Aggregation Company of Nigeria (GACN) and Greenville LNG Limited on the 20-year Gas Sale Aggregation Agreement (GSAA).

Business Hilights gathered that the deal will see trucks and other machinery that hitherto ran on diesel being fuelled by Liquified Natural Gas (LNG) and deepen seamless gas supply nationwide at uniform cost and further reduce pressure on forest resources in terms of fuel wood.

The agreement will also further crash use of Kerosene by households in cooking food and other domestic uses as price of gas will drop drastically

The agreement will also ensure cleaner environment and create more jobs for Nigerians. Under the agreement, Greenville LNG will introduce the first 100 per cent LNG fuelled trucks with a fleet of 750. It will also establish a series of LNG fuel stations across Nigeria on major highways.

Explaining more during the signing of the deal, the Minister of State, Petroleum Resources, Dr. Ibe Kachikwu, said “this agreement will unlock huge economic opportunities for the country. It currently produces 2,200 cubic meters of gas but it has the capacity to produce 5,000 scuf of gas. It will ensure the direct supply obligation of gas suppliers are met because some of them have not been able to execute their mandate”.

“This initiative is part of our 7 Big Wins programme and since President Muhammadu Buhari came onboard, we were given the mandate to unlock the gas potential of the country and reduce dependence on oil. This programme has been in the works for three years running. We set up different companies including the marketing arm of gas division of the NNPC. This project was also realised because of the calm we somewhat enjoy in the Niger Delta region. Without the relative peace, this cannot work. It is coming just few months after we launched the new gas policy.”

However, contrary to the claims of the NNPC, there had been be serious drop in the price of cooking gas in many parts of the federation in the last six months