Reps task NNPC on completion of $12bn Trans Saharan Natural Gas Pipeline project

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3 years ago

The House of Representatives on Wednesday tasked Nigerian National Petroleum Corporation (NNPC) Limited with the need to fast-track the completion of the ongoing construction of the $12 billion Trans Saharan Natural Gas Pipeline Project.

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Ahmed Munir.

In his lead debate, Hon. Munir observed that on 14 January 2002, the Nigerian National Petroleum Corporation (NNPC) Limited and the Algerian National Oil and Gas Company (Sonatrach) signed a Memorandum of Understanding for a $12 billion, 4,128 kilometres Natural Gas Pipeline Project with a projected annual capacity of 30 billion cubic meters that will extend Gas supply to Europe.

“The House also notes that in June 2005, the Nigerian National Petroleum Corporation Limited and Sonatrach signed a contract with Penspen Limited for a feasibility study of the project, which was completed in September 2006, and the pipeline was discovered to be technically and economically feasible and reliable which in turn led to the inter-governmental agreement on the pipeline signed by the Energy Ministers of Nigeria, Niger and Algeria on July 3, 2009, in Abuja.

“The House is concerned that in 2013, the Federal Government approved a budget of $400 million for commencement of the project originally scheduled to be operational by 2020 with no commensurate progress made to date.

“The House is cognizant that a new Gas Master Plan (GMP) needs to be crafted due to the current geopolitical realities such as; the newly completed 20,000 barrel per day Zinder Refinery in the Niger Republic, new Niger-Benin Republic Pipeline due for completion in 2023, discovery and exploitation of hydrocarbons in commercial quantity in the Lake Chad Region of Chad Republic, prospecting of oil and gas on the Nigerian side of Lake Chad, the discovery of hydrocarbons in Bauchi, the spike in the cost of hydrocarbon, security situation along the right of way across the Sahel, as well as the Russia-Ukraine Conflict leading to Western Nation looking for alternative options to meet energy demands.

“The House is also cognizant that the successful completion of this vital project will create jobs, spur economic growth, and enhance energy and regional security,” he noted.

In the bid to address the concerns raised, the House urged authorities of NNPC Limited to review the National Gas Master Plan relating to the project to conform with the variables of today’s global economy.

To this end, the House mandated its Committee on Gas Resources to ensure compliance and report back within four weeks for further legislative action.

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