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FG Reduces Gas To Power Price From $2.50 To $2.18
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Quote:The Federal Government has on Thursday reduced gas to power prices from $2.50 to $2.18 with immediate effect.

President Muhammadu Buhari disclosed this while declaring open the 2021 Gas Sector Stakeholders (Ajaokuta-Kaduna-Kano, AKK Gas Pipeline Project) Forum held in Kano.

Buhari represented by Minister of State for Petroleum Resources, Timipre Sylva, said the reduction have been communicated to the relevant stakeholders for compliance.

According to him, “Following the successful negotiation between the Federal Government and the organized labour unions and the detailed review of the Gas pricing framework in Nigeria, the price of Gas to power has been reduced from $2.50 to $2.18 with immediate effect.

“The outcome of the negotiation and reviews have been communicated to relevant stakeholders,” he stated.

The President said the completion of the project would help in revitalizing the industries and create more jobs opportunities in the benefitting states which include kano, Kaduna and Nasarawa states.

“The project is the focus on facilitating increase Gas Penetration in the Northern part of the country, especially the AKK pipeline corridor of FCT, Kano, Kaduna, Kogi, Niger, Nassarawa and other
Neighboring states.

“Therefore the forum is geared towards sensitizing the entire northern parts of Nigeria of the upcoming opportunities to bring both new and hitherto moribund companies back to life.

“Kano State alone is dotted with several industrial parks. These and others in other states justify the need to optimize value creation from these industries.

“Experts estimate that it will take at least two to three years to rehabilitate and position these industries for optimal performance. Thus, today’s collaboration with all stakeholders is geared towards kick-starting the required activities that will guarantee full usage of the delivered gas through the AKK pipeline when completed.

“Today’s event reinforces our commitment to realizing the inherent potentials of Gas usage as the National Catalyst for Achieving Economic Diversification from Crude oil and transition fuel from fossil fuels of today to the renewable energy of tomorrow.

“It is this commitment that informed our support and commission of two gas-powered plants, vessel pipeline operated in Kano State in December 2020 in achieving the uninterrupted delivery of over 30 megawatts of power supply to the industrial hubs.

“Our successful collaboration and the completion of the AKK in 2023 will significantly enhance Mr President’s vision and current drive for increase domestic gas utilization as the mainstay for nationalnindustrialization, increase foreign investment, government revenue growth and ultimately provide more job opportunities for Nigerians,” Buhari stated.

On his part, the Group Managing Director, GMD of Nigeria National Petroleum Corporation, NNPC, Mr Mele Kolo Kyari, said they were working assiduously in ensuring timely completion of the project.

Kyari said that some of the equipment has already been delivered to Nigeria from abroad.

He said the AKK project when completed will provide about 1 million jobs.

In his speech, Governor Abdullahi Umar Ganduje of Kano State said the AKK project will help immensely in reviving over 200 industries in Kano which have been in slumber for a long time.

He said his administration had taken bold steps that would enable the project to be completed successfully, saying the people of Kano State would benefit from the project especially in the aspect of boosting their businesses.

Meanwhile, the stakeholder’s forum was themed “Optimizing the Economic Development Capacity of the Ajaokuta-Kaduna-Kano”AKK” Gas pipeline Project”.



https://www.vanguardngr.com/2021/07/fg-reduces-gas-to-power-price-from-2-50-to-2-18/


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