Pipeline Infrastructure Nigeria Limited (PINL), a pipeline surveillance firm, has said that only stronger pipeline security can safeguard Nigeria’s $20 billion gas deals.
The Nigerian National Petroleum Company Limited (NNPCL) ‘secured over US$20 billion in Gas Sale and Purchase Agreements, covering 1.29 billion standard cubic feet of gas per day for long-term LNG feed gas and an additional 750 million standard cubic feet per day for domestic industrial gas supply through strategic partnerships, including the Dangote Refinery and other major investors.
‘NNPC Limited also signed strategic agreements, including a 20-year Gas Sale and Aggregation Agreement with Ajaokuta Steel Company Limited, a 15-year Gas Supply Agreement with UTM FLNG, and network agreements expected to inject up to 800 million standard cubic feet of gas per day into Nigeria’s domestic gas transportation network,’ PINL stated.
At a stakeholders meeting on Friday in Yenagoa, Akpos Mezeh, General Manager, Community and Stakeholders Relations of PINL, also linked the future of the African Atlantic Gas Pipeline (AAGP) to the protection of oil and gas assets in Nigeria.
It will be recalled that the Heads of State of the Economic Community of West African States (ECOWAS) Member States signed the Intergovernmental Agreement on the AAGP during the ECOWAS Summit in Freetown, Sierra Leone.
The landmark agreement established the sovereign framework for the nearly 6,900-kilometre gas pipeline that will run from Nigeria to Morocco through 13 coastal countries with interconnections to the landlocked Sahel states.
The AAGP is expected to transport 30 billion cubic meters of natural gas annually, thereby strengthening regional energy security, supporting industrialisation, creating jobs, increasing electricity generation, and connecting West Africa to Morocco and European energy markets.
It is being jointly promoted by the Nigerian National Petroleum Company Limited (NNPCL) and Morocco’s Office National des Hydrocarbures et des Mines (ONHYM), and enjoys the support of President Bola Tinubu, ECOWAS Member States and international development partners.
Mezeh said the gas investments hold particular importance to PINL and every community represented at the meeting as strategic partners in positioning Nigeria as Africa’s leading energy nation.
‘For us at PINL, this project carries a very important message: world-class energy infrastructure can only thrive where pipelines are secure, communities are peaceful, and stakeholders work together.
‘Every community represented here is therefore a strategic partner in positioning Nigeria as Africa’s energy hub,’ he stated.
On the June performance of NNPCL, Mezeh said the company posted a profit after tax of N535 billion, which represented a 16 per cent increase over the N462 billion recorded in May.
According to him, ‘Monthly revenue stood at approximately N4.39 trillion, while statutory contributions to the Federation Account between January and June reached N6.286 trillion, further demonstrating the critical role of the petroleum industry in supporting Nigeria’s economy.
‘Although crude oil production experienced a slight decline to 1.72 million barrels per day due to operational and technical challenges, natural gas production continued its upward trajectory, increasing to approximately 7.84 billion standard cubic feet per day.’
He said the figures demonstrate resilience despite the challenging operational realities and further reinforce why protecting our pipelines remains a national priority.
Mezeh announced that Nigeria has made significant progress on some major gas infrastructure projects, including 5Obiafu-Obrikom-Oben (OB3) Gas Pipeline now at 98 per cent completion, with final tie-in activities ongoing ahead of First Gas expected this August and the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline at 94 per cent completion.
He said the ANOH Gas Processing Plant has been successfully commissioned, further strengthening Nigeria’s domestic gas infrastructure, and that at the recently concluded 25th Nigeria Oil and Gas (NOG) Energy Week in Abuja, NNPCL announced landmark achievements that signal renewed confidence in Nigeria’s energy sector.
‘Within the last year, NNPC Limited secured over US$20 billion in Gas Sale and Purchase Agreements, covering 1.29 billion standard cubic feet of gas per day for long-term LNG feed gas and an additional 750 million standard cubic feet per day for domestic industrial gas supply through strategic partnerships, including the Dangote Refinery and other major investors.
‘NNPC Limited also signed strategic agreements, including a 20-year Gas Sale and Aggregation Agreement with Ajaokuta Steel Company Limited, a 15-year Gas Supply Agreement with UTM FLNG, and network agreements expected to inject up to 800 million standard cubic feet of gas per day into Nigeria’s domestic gas transportation network.
‘These projects will stimulate industrial growth, improve energy security, create employment opportunities and support Nigeria’s long-term economic development.
‘Together with the African Atlantic Gas Pipeline, they represent a new chapter in Nigeria’s energy transition.
‘However, these investments can only deliver their intended benefits when the supporting infrastructure remains protected from vandalism, crude oil theft and sabotage.
‘This is why the work we are doing together through community partnership has become even more significant,’ Mezeh stated.
He concluded by saying, ‘Together, we can protect our national assets, secure our communities and leave a lasting legacy of sustainable development for future generations.’
Also speaking, Bubaraye Dakolo, Ibenanaowei of Epetiama Kingdom in Yenagoa Local Government Area of Bayelsa State, and Chairman, Bayelsa State Council of Traditional Rulers, urged the Federal Government to increase funding for pipeline security in the Niger Delta region.
Dakolo said increased funding for pipeline security would help address some of the socio-economic factors contributing to pipeline vandalism and crude oil theft.
He stressed that pipeline security would become easier when communities that host oil and gas infrastructure have greater access to resources and opportunities.
‘Pipeline security becomes easy when the people have the resources from their land.
‘So, the more money that gets into the community, the safer the pipelines will be. For all these years, pipelines were at risk because monies were not in the creeks. Monies were not in the communities. Monies were not reaching them.
‘If the Federal Government wants to be smarter and wants to ensure that pipeline vandalisation or any form of incursion ceases completely, then they should increase the volume of money,’ he stated.
According to him, more contracts, facilities, scholarships, empowerment programmes and other opportunities in host communities would strengthen community ownership and reduce threats to pipelines.