Connect with us

OIL AND GAS

Dangote backs Tinubu’s CNG drive, invests over $280m in trucks, infrastructure

Published

on

Dangote backs Tinubu’s CNG drive, invests over $280m in trucks, infrastructure

… becomes the largest operator of CNG trucks in Nigeria

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

In a demonstration of its support for President Bola Ahmed Tinubu’s CNG Initiative, which aims to provide cheaper and cleaner fuelling alternatives for all Nigerians, Dangote Cement Plc has made significant investments exceeding $280 million in compressed natural gas (CNG) technology and infrastructure.  

President Tinubu, whose commitment to CNG deployment and clean energy is unmatched in Africa, has maintained his administration’s drive to create a conducive environment for private sector investments and expand Nigeria’s CNG infrastructure to enhance energy efficiency and drive economic growth. As part of this initiative, he ordered the distribution of 1 million free CNG conversion kits for commercial vehicles involved in transporting people, food, and goods. 

At a recent event, the President emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector. He stated that CNG transportation is an economic necessity for Nigeria, signalling a significant shift in the country’s approach to public transportation and energy use.

“Utilising natural gas to power Nigeria’s transportation industry is the next way to go,” he stated. 

On its part, the Dangote Cement said the over $280m investment not only solidifies its leadership in the CNG sector but also reflects its dedication to mitigating climate change and supporting a transition to a low-carbon economy.

Arvind Pathak, the Group Managing Director of Dangote Cement Plc, said the investment aims to acquire 100% CNG trucks as part of a long-term plan to transition its entire fleet to CNG.  

This move marks a significant milestone in Dangote’s clean energy transition, with the objective of operating most of its fleet on CNG by mid-2026. As at October, the company has received its first batch of 1,500 mono-fuel CNG trucks while expecting additional 1,600 CNG trucks; totalling 3,100 before the end of the year. 

Pathak stated, “By mid- 2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.” He said plans are afoot to aggressively pursue this timeline of deployment, beginning from the first quarter of 2025. “We are keeping our eyes on the ball to ensure that we do not miss our target dates of full compliance”, he added. 

Pathak said that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels. He added that the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to further support fleet operations. 

President/Chief Executive, Dangote Group, Aliko Dangote said the company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.  

“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President,” Dangote added. 

He noted that the company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, emphasising that the initiative is a boost to President Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.

  According to him: “We are now using CNG vehicles, especially with the new policy of the Federal Government, launched under the Renewed Hope Agenda by His Excellency, President Bola Ahmed Tinubu. We are committed to a cleaner and greener future.”

OIL AND GAS

Kyari, refineries and a green ribbon, by KEN UGBECHIE

Published

on

Kyari, refineries and a green ribbon, by KEN UGBECHIE

Mele Kyari, a geologist and Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), has dug his way into the tunnel of history.

Within a space of two months, he announced the successful revamp of two refineries.

In November 2024, Port Harcourt refinery came on stream. The following month, December, Warri refinery burst back to life. Both are not performing optimally, yet. But the journey has only just begun. Kaduna refinery is projected to begin production later this year.

And if all goes well, a substantial percentage of the nation’s local petrol consumption would be sourced in-country. The implication on forex, job creation and economic reflation is enormous, positively.
So what? Some Nigerians have asked this question.

I won’t even tag them naysayers.  There is a tincture of justification in their rage. But if such Nigerians did not rage against those who in the past brought the refineries – Port Harcourt, Warri and Kaduna – to ruins, they should not shudder at the celebratory dance of President Bola Tinubu and his laudation of Kyari and his team for achieving both the improbable and the impossible.

After many years of redundancy, after several failed attempts to restream the moribund refineries with billions of dollars wasted in the fitful misadventures, someone has finally belled the cat.

Such a person deserves a worthy pat on the back.
Little wonder, President Tinubu was gushing at the news of Warri refinery cracking back to life. Here, I salute the wisdom of Tinubu in keeping Kyari on his job. Against a crude and virulently malicious campaign to get Kyari out of the way, Tinubu ignored the mob and renewed Kyari’s tenure. One of the missteps of the past was a high and volatile turnover of leadership at the nation’s oil and gas behemoth. Commonsense management will tell you that job insecurity, at any level, is antithetical to sustainable planning for long term goals.

Fixing a refinery, especially one that has been rendered comatose for many years (with some bolts and parts gone rusty) is not a one-hour flight. It’s a long-distance haul, requiring patience, precision and meticulous planning.

Had Kyari been shoved aside to fit the script of his ‘enemies’ and political mandarins seeking to give ‘wise’ counsel to Tinubu, these refineries would never have come on stream.

In the stereotypical Nigerian way, the new management would have reviewed the contract, reworked the papers and even re-awarded aspects of the contract to another corporate.

Herein is the wisdom of Tinubu in retaining Kyari highly commendable.


As more Nigerians push for the refineries to attain 100 percent production efficiency, it is apposite to state what Kyari did differently. How did Kyari succeed where many others in the past failed woefully?
Dateline: October 21, 2021, NAF Conference centre, Abuja: Kyari was Special Guest of Honour at the All Nigeria Editors’ Conference.

He spoke off the cuff on the subject, “Insecurity as it affects the Oil and Gas sector.”  He showed a good grasp of the malaise that has afflicted the Nigerian oil and gas industry. He, however, raised a banner of hope that under his watch, “things are now done differently.” He said issues of refineries not working, crude oil theft, among others, are all traceable to the Nigerian elite which include the editors and everyone present at the event.


Kyari said that refineries had become comatose because the leadership elite had been doing things the wrong way over the years by relying on the builders of the refineries to come to Nigeria to fix the refineries.

This model, he explained, does not happen anywhere because there are specialists whose business is to fix such refineries. They are not the builders but their job is to fix them when they break down.

He called such companies EPCs (Engineering, Procurement and Construction). He gave an analogy: “You cannot ask Toyota to come down to Nigeria to fix your Toyota car. You give it to a technician. This is the error we have been repeating over the years.”


He credited President Muhammadu Buhari for giving his management the free hand to do the right thing. “This is the first time in history that NNPC and its subsidiaries are allowed to do things the way things should be done. Now, I can confirm to you that we have taken responsibility and we will fix the refineries.

We have started the process, contractors have been mobilised to the Port Harcourt refinery, while the same process for Warri and Kaduna refineries will be concluded by the end of this year,” he told a now excited crowd of over 200 editors, representatives of several government agencies including security agencies and the private sector.

He got a standing ovation afterwards.
Fast forward. Three years later at the twilight of 2024, two of the refineries had become operational once again all because Kyari walked a different path. It’s no magic. Just focussed, honest leadership. Kyari had been sincere as the helmsman of the NNPC even to his own hurt. The first NNPC honcho to open the ledger for public scrutiny. He did not only audit NNPC accounts, he got them published. And for once in ages, Nigerians got to know the assets, liabilities, strength and weaknesses of the company they own. Kyari has shown that he is a different breed of leader, a transformational leader who has used the same personnel at NNPC, in the same country, against the same headwinds to achieve milestones, some once thought unattainable.
Retaining Kyari, a man he did not appoint, is one of the smartest decisions of President Tinubu.

Kyari bestrides two worlds in Nigeria’s oil and gas history. The pre-PIA (Petroleum Industry Act) and the post-PIA, a delicate transition that required experience, emotional intelligence, industry knowledge, and leadership savvy. If the transition was a kind of exam for him, the geologist, earth scientist of crude oil marketer of renown simply aced it. He proved one thing: Nigeria’s challenges can be surmounted by Nigerians.


He deserves all the Presidential plaudits and a green ribbon around his neck as a memorial of national honour.

Continue Reading

OIL AND GAS

Seplat Energy Completes Acquisition of MPNU

Published

on

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Seplat Energy Plc, a leading Nigerian energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, is delighted to announce that it has completed its acquisition of Mobil Producing Nigeria Unlimited (“MPNU”) from ExxonMobil . 

The transaction is transformative for Seplat Energy, more than doubling production and positioning the Company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.

The completion of this acquisition has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; 5 gas processing facilities; and 3 export terminals.

The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40% operated interest in OML 67, 68, 70 and 104; 40% operated interest in the Qua Iboe export terminal and the Yoho FSO; 51% operated interest in the Bonny River Terminal (‘BRT’) NGL recovery plant; 9.6% participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.

Senator Udoma Udo Udoma, Chairman of Seplat Energy, said:

“Seplat Energy sincerely thanks His Excellency, President Bola Ahmed Tinubu GCFR, for supporting this transaction, and appreciates the support and diligence of the various Ministries and regulators for all the work to reach a successful conclusion.

“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.

“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the Government, regulators, communities and our staff.”

Roger Brown, Chief Executive Officer of Seplat Energy, said:

“Today we have achieved a major milestone in the history of Seplat Energy and I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.

“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.

“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.”

“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders.

Strategic Priorities & Near-term Outlook

MPNU adds substantial reserves and production to Seplat Energy; 409 MMboe 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd.

As operator, Seplat’s immediate tasks are to ensure smooth transition of MPNU staff into Seplat, and on the operations, to swiftly target numerous opportunities that exist to organically grow production and further enhance the value of the assets for all stakeholders.

Detailed guidance for the enlarged group in 2025 will be provided with Seplat’s full year 2024 results, expected in February 2025.

Further announcements will be made as and when appropriate, in line with regulatory requirements.

Continue Reading

OIL AND GAS

Over 300 Youths benefit as NLNG begins Nigerian Content HCD Trainings

Published

on

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Over 300 Youths benefit as NLNG begins Nigerian Content HCD Trainings NLNG, on Tuesday, in Port Harcourt, Rivers State, kicked off its Nigerian Content Human Capacity Development (NC-HCD) Basic Training Programme for the NLNG Train 7 Project, a major NC programme aimed at reskilling young graduates and developing human capital.

A total of 331 young graduates from diverse academic disciplines, who emerged successful out of 848 previously shortlisted from the Nigerian Oil and Gas Industry Content (NOGIC) Joint Qualification System (JQS) portal of the Nigerian Content Development and Monitoring Board (NCDMB), are undergoing the 12-month programme.

Areas of training include ICT, Engineering, Welding and Fabrication, Non-destructive Testing (NDT), Lifting and Working at Heights, Quality Management Systems, Marine and Offshore Services, and Facility Management and Maintenance.

In a welcome address at the event, the NLNG Train 7 Corporate Liaison Manager, Engr. Joshua Anemeje, who represented the Train 7 project, said the execution of the project has progressed remarkably well and attributed the successful commencement of the NC-HCD Training Programme to the support of the NCDMB.“We are excited to see the number of young men and women this programme will impact.

NLNG takes pride in empowering our people, providing an environment that builds skills and capabilities. As you know, the Train 7 Project is nearly 75% complete, employing over 10,000 skilled individuals on-site.

This training offers participants a chance to make the most of their learning and apply it in future endeavours,” he said.Engr Anemeje disclosed that there are over 10,000 workers actively engaged in the construction of the Train 7 Project at the NLNG Plant Site at Finima, Bonny Island, Rivers State.

He charged the trainees to stay focused and work towards utilising the skills they acquire for future endeavours.

In the keynote address, the NCDMB Executive Secretary, Engr Felix Ogbe, FNSE, represented by the Director of Capacity Building and Corporate Services, Dr Ama Ikuru, expressed joy that the training programme had finally taken off in fulfilment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act requirement on human capital development.He said the programme, designed to build a pool of skilled and globally competitive workers to support the development and growth of the Nigerian oil and gas industry and its related sectors, represents a crucial investment in our country’s future and remains a commitment to the empowerment of the next generation of skilled professionals.

Addressing the trainees, Dr. Ikuru stated that the opportunity created by the NC-HCD programme will enable them to build a strong foundation in both knowledge and practical skills.

He remarked that there was a clear pathway to employment for high-performing trainees.

He further remarked that young graduates seeking to benefit from similar training for oil and gas industry-related jobs can register on the NCDMB’s NOGIC JQS Portal, which is the statutorily established database for companies operating and providing services in the sector.

The training is provided by the Oil and Gas Trainers Association of Nigeria (OGTAN).The Train 7 Project is expected to increase the production capacity of the NLNG Terminal by 35 per cent, from the current 22 million metric tonnes per annum (mtpa) to 30 mtpa.

Continue Reading

Trending

Copyright © 2021 All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from August24news.com
This Website is designed and Managed by: August 24 Communications Nigerian Limited (RC: 798585)