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NNPC ups equity in gas aggregator to 40%

The Nigerian National Petroleum Company Limited (NNPCL) has increased its equity in the Gas Aggregator Company of Nigeria (GACN) from 30per cent to 40per cent.

 Its Group Chief Executive Officer, Malam Mele Kyari broke the news yesterday in Abuja during the issuance of domestic gas aggregation license to the GACN by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA).

The ceremony was also the "Unveiling Event of GACN's New Mandate Identity and Expanded Mandate."

He predicated the increase on the stake on NNPC's bid to meet the aspiration of the citizenry and country.

He said: "And we in NNPC we recognize our role. We understand our involvement from upstream all the way to the fuel stations or wherever gas ends or to homes.

"We know the critical role we have to play and that is why we took increased interest in GACN by also elevating our presence in the company by scaling from 30 to 40per cent and also giving one of the best of hands that we can get for you."

He also noted that owing to the vision to meet the gas needs of the people, NNPC has engaged Mr. Chijioke Uzoha as its staff.

According to him, gas can be delivered to the domestic market to create the spike and revolution Nigerians envisage.

Kyari said in view of the recognition of the fact that Nigeria is a gas country with associated oil, and that only little has been done about the gas, NNPC is now set for business.

He promised that the company can create the infrastructure needed to deliver gas to the domestic market.

Seeking the right pricing especially for power, Kyari directed his attention towards the Niger Delta Power Holding Company Managing Director, Chiedu Ugbo, saying:  "We have created the market, thank God my brother (NDPHC) is here, I will send him my invoice. You have to start paying your bills. And that can only happen if there is appropriate pricing for gas.

“We don't want to enjoy anything unless we have the right pricing for gas, and people can pay their bills, they are able to pay for the gas that they take and also that we are able to produce the gas that comes into the market. Then enjoyment can come. And these connections are very critical in our country."

He reminded the stakeholders about the conversation around energy transition, which is basically the adoption of gas as a transition fuel.

He noted that beyond semantics, the plan is realizable only with the creation of the required infrastructure and payment for the gas.

Speaking, the Authority's Chief Executive Officer, Malam Farouk Ahmed, noted that the license is expected to stimulate vibrancy and efficiency and spur additional investments into natural gas value chain in the country through support for the Implementation of domestic gas delivery obligation.

According to him, the license will ensure transparency in the domestic gas strategic sectors.

The ACE noted that it will culminate in ??operating nomination and balancing mechanism for equitable curtailment of natural gas deliveries in cooperation with the Authority.

He further said the "Gas Aggregator Company Nigeria Ltd/Gte is being presented with the Domestic Gas Aggregation License to carry out its functions according to the conditions prescribed in the Petroleum Industry Act, 2021, the Regulations and terms & Conditions made therefrom.

Ahmed said the Authority, as a business enabler, is pleased with the attainment of this milestone. "We believe it will reinforce the commitment and the renewed-hope efforts of this Administration towards the development of gas resources for the betterment of the lots of the investors and Nigerians in general," he said.

The NMDPRA also explained that Section 153 of the Petroleum Industry Act (PIA 2021) provides that the Authority may upon approval of an application and payment of prescribed fees, grant and issue a qualified person a domestic gas aggregation license.

In line with the above, Gas Aggregator Company of Nigeria (limited by guarantee) application for Domestic Gas Aggregation license was approved after due consideration and upon fulfilment of the specific requirements.

The Domestic Gas Aggregation license as provided for in the PIA is significant in many respects as it underscores the focus and priority attention placed on the domestic gas market space.

In his goodwill message, the Minister of State for Petroleum (Gas), Hon. Eberikpo Ekpo said the expanded mandate of the GACN is not just for GACN but for the entire gas sector.

He added that "the rebranding and expansion of GACN's mandate symbolises a tripod towards actualizing the Federal Government of Nigeria ambition to make sure there is gas penetration nationwide with already existing and laid down policies to create a thriving domestic gas sector that will build national development."