After Completing PH Refinery, FG Announces Completion Date for Another Multi-million Dollar Project

After Completing PH Refinery, FG Announces Completion Date for Another Multi-million Dollar Project

  • The Federal Government announced the completion date for its $700 million Obiafu/Obrikom/Oben gas pipeline project
  • The FG also explained why it resorted to removing fuel subsidies despite the hardship experienced by many
  • Upon completion, the project is expected to supply the AKK pipeline with gas from the three fields of Obiafu, Obrikom, and Oben

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The $700 million Obiafu/Obrikom/Oben gas pipeline, often known as OB3, is scheduled to be finished in March 2024, according to a Federal Government announcement made on Tuesday.

Like Dangote, another Nigerian billionaire's company announces the completion of gas project

This was declared during the ongoing 7th Nigeria International Energy Summit in Abuja. The construction of the project began in 2016.

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NNPCL puts timeline to end petrol import as Dangote, one other refinery begins production

Earlier, Legit. ng reported that the Port-Harcourt Refinery was slated to recommence operations with a projected output of two million litres of petrol and 2.2 million litres of diesel daily, per the Federal Government's announcement.

Gas project
The Minister of State for Petroleum Resources and Gas gave a couple of status reports on Nigeria's gas industry. Photo Credit: Akarawut Lohacharoenvanich
Source: Getty Images

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Update on Nigeria's gas industry

Ekperikpe Ekpo, the Minister of State for Petroleum Resources and Gas, gave a couple of status reports on Nigeria's gas industry at the summit

He described the OB3 gas pipeline as one of Africa and Nigeria's most significant gas transmission lines.

He said:

“Another milestone in our journey towards a gas-focused economy is the Ajaokuta-Kaduna-Kano pipeline. I am pleased to report that significant progress has been made in constructing this critical infrastructure project, and we are on track to ensure its completion and commissioning as scheduled.
“The Obiafu/Obrikom/Oben (OB3) is a vital piece of gas infrastructure for feedstock supply to the AKK pipeline. This pipeline is among Nigeria and Africa's most significant gas transmission systems.

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“I am highly elated to announce that going by the contractor estimates, the OB3 pipeline will be completed by March 2024, and the 42” 127km pipeline will supply 2BCF (two billion standard cubic feet) per day.”

Project to supply three fields upon conclusion

The Punch reported that when the pipeline is finished, Ekpo said it would supply the AKK pipeline with gas from the three fields of Obiafu, Obrikom, and Oben.

He also praised NNPCL for its unwavering commitment to completing the OB3 pipeline project on schedule.

The Minister of Information and National Orientation, Mohammed Idris, said that the petroleum subsidy has burdened Nigeria's financial resources.

He claimed that this resulted in inefficiencies and, more significantly, made investing in vital areas of energy security more difficult.

Why subsidy was removed

The minister read Tinubu's address, which stated that eliminating subsidies is meant to make the energy industry more accountable and transparent.

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He pointed out that money formerly set aside to subsidise petroleum products is now being used to improve and expand our energy and other social infrastructure.

In addition, he stated that eliminating the subsidy has stimulated more private sector involvement in the energy sector, which may draw in more domestic and foreign investors and promote innovation and competition that will lower costs and boost the sector's overall efficiency.

He stated that his administration is dedicated to putting social intervention programs into place to lessen the short-term consequences on vulnerable communities to help cushion the effect of the subsidy reduction.

Billionaire's company announces completion of gas plant

Legit.ng reported that the Nigerian indigenous energy company Ardova Plc (AP) has announced the completion of its new Liquefied Petroleum Gas (LPG) plant.

The gas plant located in Ojora, Lagos state, is expected to commence operation in March 2024 and will be able to meet more than 50% of Nigeria's demand.

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BUA finally explains why its cement sold above N3,500/bag despite slashing cost

This was disclosed during the pre-commissioning tour of the facility by Farouk Ahmed, the chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Source: Legit.ng

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