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NCDMB Postpones Kwale Gas Facility Commissioning

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Kwale Gas Facility

By Adedapo Adesanya

The Nigerian Content Development Monitoring Board (NCDMB) has postponed the technical commissioning of the 300MMscfd capacity Kwale Gas Gathering and injection facility due to the indefinite nationwide strike directed by the leadership of the organised labour.

In a statement dated Sunday, it said the formal commissioning ceremony of the facility, slated to be performed by the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo on Thursday, June 6, 2024, has been put on hold due to the commencement of the nationwide strike by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

Recall that the leadership of the Organised Labour said there was no going back on the nationwide industrial action on Monday.

“For now, we don’t have the power to call off the strike, tomorrow (Monday) morning, the strike will kick off as we take their (NASS) plea asking us to call off the strike to our various organs,” the TUC president, Mr Festus Osifo, said after a meeting with the leadership of the National Assembly (NASS) on Sunday nigher.

The 300MMscfd Capacity Kwale Gas Gathering (KGG) and injection facility in the Niger Delta, is a project by a Joint Venture company between Xenergi Limited and NCDMB Capacity Development Intervention Company, Nedogas Development Company Limited (NDCL), in collaboration with the NNPC Gas Infrastructure Company (NGIC), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited.

It was designed to handle stranded gas resources in Nigeria’s OML 56 oil province, by providing the opportunity for independent operators in the area to monetise natural gas from their fields through the gas gathering, compression, injection and metering infrastructure of the KGG for quick market access.

The KGG hub, which has been tied into the NGIC-owned and operated 48-inch OB-3 gas trunk line, is now fully commissioned with gas injection capacity, totalling approximately 50 MMscfd comprising 20MMscfd from the Nedogas Plant, located 3km away in Energia’s Ebendo field and another 30 MMscfd coming from the Matsogo field operated by Chorus Energy Limited. Injected gas volumes are gradually and steadily being ramped up.

The project represents a significant milestone in Nigeria’s decade of gas initiative and a major achievement in the quest to provide gas into the OB3 trunk line and monetise natural gas resources from the OML 56 producer cluster.

With the successful injection of gas from the Energia/Oando JV and the Chorus-operated Ebendo and Matsogo fields respectively into the OB3, the KGG Facility will receive additional gas from nearby fields including those operated by First Hydrocarbon Nigeria (FHN), Pillar Oil, and Midwestern Oil & Gas, all aimed at positioning KGG as a fully-fledged gas-gathering facility and hub with single point injection of up to 300 MMscfd of gas into the OB3 via the KGG tie-in.

The plan is to expand the capacity of the KGG facility to 600 MMscfd in the second phase.

In addition to the gas delivery obligations of the facility, the KGG will also be supplying the Delta State Economic Zone (DSEZ) from an integrated supply node within the manifold at the hub.

Speaking about the project, the Executive Secretary of NCDMB, Mr Felix Ogbe, enthused that the success story of NEDOGAS at Kwale, Delta State, could be replicated in other oil- and gas-producing communities to minimise gas flaring. He declared the board’s readiness to continue collaborating with the company.

“Their model should be extended to other parts of the country where gas flaring is continuing. They have shown that with the modular system, we can quickly remove flaring from our operations in Nigeria.”

The Managing Director of NDCL, Mr Debo Fagbami, explained that with the completion of the first phase of the KGG facility, the proof-of-concept to readily monetise gas has now been established to the extent of eradicating the pain of seeing an invaluable resource being wasted.

Rather than just being concerned about ending gas flaring, Mr Ogbe said the project presents opportunities to harness the potential of the flare sites from these oilfields, which according to him, will ultimately convert a “wasting” resource into an economic asset used to generate cleaner energy.

With an estimated 180 billion cubic feet of proven natural gas reserves, Nigeria has the ninth-largest concentration in the world.

However, the country continues to flare significant quantities of its associated gas, which has relegated the health and environmental well-being of Nigerians to the background for over 60 years.

Mr Ogbe added that the KGG facility will create hundreds of direct and indirect jobs for indigenes of the host and nearby communities.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Nigeria Customs Destroys N181m PMS Smuggling Network in Adamawa

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petroleum products

By Adedapo Adesanya

The Nigeria Customs Service has uncovered a major petroleum smuggling network in Adamawa State, cutting off fuel supply lines that have been draining national revenue and strengthening criminal economies along Nigeria’s northern borders.

National Coordinator of Operation Whirlwind, ACG Kolapo Oladeji, disclosed that officers recorded 55 seizures in eight weeks, blocking the illegal movement of more than 184,000 litres of PMS, a development he described as a significant economic breakthrough for the country.

“This operation is about protecting Nigeria’s strategic resources,” Mr Oladeji told journalists on Thursday at the Customs House in Yola. “Our mandate is clear: to shut down all illegal supply chains that empower criminal elements.”

The seizures, valued at N181.6 million in duty-paid terms, were intercepted across notorious smuggling corridors including Mubi–Sahuda, Farang–Belel, Gurin–Fufore, Maiha, Wuro-Bokki, Ribado waterways, Muninga and Bakin Kogi.

According to Mr Oladeji, items recovered include 2,642 jerrycans of 25-litre PMS, several 220-litre drums, and two large wooden boats used to ferry petroleum products across the border.

He stressed that the illegal PMS diversion is not just an economic crime but a direct threat to national stability.

“The smuggling network is a grave threat to Nigeria’s economy and internal security,” he said. “The illegal diversion of PMS weakens our revenue base and directly fuels non-state actors and cross-border criminal syndicates.”

Mr Oladeji added that intensified surveillance under Operation Whirlwind has “made it extremely difficult for saboteurs to move PMS out of the country,” in line with the directives of Comptroller-General Adewale Adeniyi.

Commending residents of border communities for supporting the operation with credible intelligence, the Customs chief urged them to remain vigilant.

“Your timely information has been invaluable,” he said. “Security is a collective responsibility, when you see something, say something.”

He also acknowledged the media’s role in raising awareness about the economic and security implications of petroleum smuggling, describing public enlightenment as crucial in sustaining recent gains.

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Ekpo Laments Slow Progress in Decade of Gas Initiative

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Decade of Gas Initiative

By Adedapo Adesanya

The Minister of State for Petroleum Resources, Mr Ekperikpe Ekpo, has expressed his frustration towards the partial progress in Nigeria’s flagship Decade of Gas Initiative, advocating that it must now be aggressively accelerated.

Launched by the late former President Muhammadu Buhari in 2021, the scheme is a national policy drive declaring 2021–2030 as the country’s “Decade of Gas.” with the goal of transforming Nigeria from an oil-dependent economy into a gas-powered industrial nation, using its vast natural gas reserves (one of the largest in Africa) for economic growth.

However,  speaking recently at the 14th Practical Nigerian Content (PNC) Forum in Yenagoa, Mr Ekpo said the policy has delivered some gains in LPG penetration, CNG rollout, and gas commercialisation, but “not at the scale Nigeria urgently requires.”

“We have made progress, but not enough,” the minister admitted. “The pace has been slower than expected, and we must move with far greater urgency.”

He cited persistent infrastructure gaps, gas supply volatility, funding constraints, and delayed policy execution as major setbacks.

“Critical pipelines are behind schedule. Feedstock shortages still hamper power and industries,” he said. “These challenges have limited the full realisation of the Decade of Gas vision.”

The minister, however, outlined a renewed push to accelerate delivery through tighter regulatory coordination and investment incentives.

“We are strengthening inter-agency alignment to remove approval bottlenecks,” Ekpo said. “The PIA gives us the fiscal tools to unlock more capital into midstream and domestic gas programmes.”

He noted measurable progress in domestic LPG consumption, clean cooking expansion, and flare gas commercialisation, calling them “strong foundations that must now be scaled up.”

“Our goal remains clear: affordable gas for power, households, industries and transport,” he said. “We are not abandoning the Decade of Gas; we are intensifying it.”

Mr Ekpo said the government will prioritise early delivery of key projects such as OB3, AKK, NLNG Train 7, Brass Fertiliser, and several gas-based industrial hubs.

“These projects will determine whether the Decade of Gas becomes a transformative legacy or a missed opportunity,” he warned.

The minister urged industry players, financiers and host communities to recommit to the national gas agenda.

“We need every stakeholder on board,” he said. “Nigeria cannot afford to slow down at a time when global markets are shifting and opportunities are emerging.”

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Power Supply Returns as Ikeja Electric Fixes Powerline Jumper Cut Issue

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Ikeja Electric Disconnect Electricity Supply1

By Adedapo Adesanya

Electricity supply was restored to residents of some parts of Lagos on Wednesday morning following a blackout spurred by a jumper cut that occurred in the Powerline area of Mosan-Okunola Local Council Development Area (LCDA) late on Monday.

The Ikeja Electricity Distribution Company (IKEDC) had announced a power outage in parts of its franchise, affecting the Ogba, Ikeja, and Alausa axis of Lagos on Tuesday.

In a message to customers, the DisCo said the power outage was due to a jumper cut at the Transmission Company of Nigeria’s (TCN) injection substation (ISS).

A jumper cut is an electrical fault that occurs when a jumper cable is damaged, disconnected, or intentionally severed.

The DisCo said the TCN’s technical team was already working to resolve the issue.

“Dear Customer, the current power outage is due to a 132kV jumper cut at the TCN Injection Substation (ISS),” the message read.

“The TCN technical team is already working to clear the fault to ensure supply is restored as soon as possible.”

Mr Kingsley Okotie, spokesperson of Ikeja DisCo, had also clarified that the power outage did not affect the entire franchise area of the company.

“It doesn’t totally affect the whole of our franchise. The message was sent to only customers in areas affected,” he said.

“We are still working to resolve the issues; that’s where we are at the moment.”

Our correspondent, who witnessed the development, reported that the jumper cut occurred around 11 pm on Monday, December 8, when a large spark occurred at the structure, leading to an immediate seizure of power supply. There was yet another minimal spark, but power was restored afterwards, likely from a back up source.

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