By Richard Ogwuche
The rehabilitation and modernization of Port Harcourt refinery by the Nigerian National Petroleum Company Limited under the guidance of the Group Chief Executive Officer, Mele Kyari has changed the narrative of a country where nothing works and delivered a huge political capital to President Bola Ahmed Tinubu, pilloried by critics of his administration at home and abroad for the rot he inherited from his predecessors.
For the feat achieved by NNPC in getting the Port Harcourt refinery working again after over two decades of inactivity, it is imperative to delve briefly into the history of the condition of the four state owned refineries before Kyari at the helm in NNPCL waved the axiomatic magic wand to turn the situation around.
Constructed back in the 60s and 80s, the 210,000 barrels per day Port Harcourt, the 125,000 barrels per day Warri, and the 110,000 barrels per day Kaduna refineries had a combined capacity of 450,000 bpd. These plants faced several technical issues, which resulted in almost zero operational refining capacity.
Against the backdrop of several failed Turn Around Maintenance after gulping billions of resources, it was understandable that Kyari was confronted by a cynical public when he pledged to rehabilitate the refineries immediately he mounted the saddle at NNPC.
The task was by no means an easy one; the delivery on his pledge with the return to operations of the Port Harcourt refinery is indeed a significant achievement by the NNPC and the Tinubu administration While this feat gives room for optimism and hope about the fate of Warri and Kaduna refineries, it also launched Nigeria on the irreversible path to energy security.
This success may seem incremental to some but if you are privileged to see the big picture through the lens of Mele Kyari, the intrepid visioner driving the reforms at NNPC, you will be confronted with a robust plan to deliver the much vaunted energy security to the country.
When he mounted the saddle at NNPC nearly five years ago, Kyari pledged the commitment of NNPC to resolve Nigeria’s energy crisis by ensuring energy security, sustainable growth, and energy affordability The gas footprint of NNPC in the past five years is an indication of the recognition of the importance of the critical role the country’s vast natural gas reserves could play in the quest to achieve energy security.
Under his guidance, NNPC continues to spearhead the drive to increase domestic gas utilization, the diversification of the energy mix, and the gradual reduction of its carbon footprint.
The focus of NNPC on the expansion of its Domestic Gas Footprints is driven by the determination to support the nation’s gas-to-power aspirations and utilize the huge gas resources to trigger the nation’s industrialization and economic development.
In order to realize this objective, NNPC invested more than $1bn from its cash flow in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. On completion, the 614-kilometer pipeline project will transport natural gas from Ajaokuta in Kogi state to Kaduna and Kano states.
With over 30 sites active in the AKK gas pipeline project, thousands of Nigerians are working on the site to deliver the project on schedule. As a key driver for gas development, NNPC has developed a wide network of pipelines across the country.
These include the Escravos-Lagos Pipeline System (EPS) in the Western Network and the Oben-Sapele linked by Ajaokouta/Geregu Interconnector. The Eastern Network includes Alakiri-Obigbo-Ikot Abasi and Imo River Alaoji linked by the East/ West Interconnector Obiafu-Obrikom-Oben 1 and the OB-3 pipeline.
Under the dynamic leadership of Kyari, other gas pipeline projects being executed by the company include the ELPS-Ibadan-Illorin-Jebba Pipeline (EIIJ), Qua Iboe-Obigbo OB3 Pipeline and the Obigbo-Umuahia-Ajaokuta Pipeline. Other strategic gas facilities projects undertaken by the company include the Assa North-Ohaji South (ANOH) Gas Processing facility to compliment the Oredo Integrated Gas Handling Facility which has led to increase in domestic supply and utilization.
A major push spear headed by Mele Kyari is currently underway to engender confidence in the quality of the Nigerian resource base. To this end, NNPC and TotalEnergies have concluded plans to invest $550m to develop a gas processing facility in the southern part of Rivers State to boost domestic supplies and exports.
This huge investment, which includes a gas processing facility and pipeline, will be built on the Ubeta onshore gas field, jointly owned by NNPC and Total. On completion, the plant will would generate 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids, it will also supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant.
Before the end of the year, Mele Kyari and his team will take Final Investment Decision (FID) on six key gas projects with the focal point of expanding the country’s gas commercialization and domestication.
Already, the NNPC has signed MoUs and project development agreements for floating LNG projects, a first in Nigeria, while currently executing a 30mmscuf/d small scale mini-LNG project. Under Kyari, NNPC leadership is determined to leverage the country’s gas assets to significantly generate value and opportunities for all Nigerians.
He sees technology as a key buffer for growth and development, prompting his leadership to develop its research institute to explore the transformative capacity of technology for the good of the society.
Apart from the ongoing ambitious expansion of gas infrastructure footprints, NNPC has also intensified efforts to enhance domestic energy access. The current leadership of the company sees energy trilemma as a profound responsibility that must be shouldered as custodians of the nation’s energy future.
Under the leadership of Kyari, the company is committed to energy security, sustainable growth, and affordability. In this regard, NNPC is set to unveil 12 Compressed Natural Gas (CNG) mother stations and mini Liquefied Natural Gas (LNG) plants in the coming months as part of efforts to boost the existing 1.6bscf of gas supply for the domestic market; the planned introduction of CNG mother stations and mini LNG plants in Abuja and Lagos are key elements in the company’s strategy to enhance access to cleaner more affordable energy while reducing reliance on imports.
The delivery of CNG in instalments may be a function of paucity of funds amidst competing priorities and other financial obligations, but under Kyari, NNPC has promised to deliver it to all Nigerians. In the coming months, NNPC Retail Limited will launch over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites. Apart from being an alternative to existing available fuel products, it will be 40% cheaper than petrol.
Kyari’s transformative policies and initiatives in the nation’s energy sector are enduring and will outlive the present generation. According to experts, his lofty policies and legacy projects will drive Nigeria towards a $1tn economy by 2027. His relentless quest for Nigeria’s energy security is further reinforced by examples from other jurisdictions whose energy security profile continues to propel the concerned nations to become the topmost players in the world’s global economy
Energy security is pivotal to the pre-eminent positions these nations occupy in the world’s economic ladder; United States (26.9tn), China ($17.7tn), Japan ($4.4tn) and Germany ($4.1tn). The lesson to be learnt is that energy security is essential for sustainable development, a functional and robust economy, and the prosperity of citizens.
Given his total commitment for the nation to achieve energy security, Mele Kyari is abreast of the economic dynamics and critical factors that will shape the present and the future of our economy and is therefore on the right side of history. Challenges such as insecurity, sabotage of oil infrastructure, corruption, and oil bunkering, among other factors, continue to overshadow and undermine ongoing attempts to reposition the country on the pathway to attaining energy security.
Kyari’s intervention led to the establishment of a joint taskforce composed of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the military, and the local communities to deal with the menace posed by this challenge. As a result of this concerted effort, the country’s oil production surged to 1.8 million barrels per day, representing over 70 per cent increase by November 2024. This surge restored Nigeria’s position as Africa’s leading oil producer.
As Kyari rightly stated recently, ‘no public wealth creation endeavour can achieve any meaningful success without energy security.’ NNPC is strategically positioned to play a critical and decisive role to deliver energy security to the nation. We should rally behind Mele Kyari, a corporate leader with impeccable credentials and a track record of selfless service. He has demonstrated deep knowledge of the process and the capacity to make it possible.
Richard Ogwuche, a commentator on Public Affairs, contributed this piece from Area 1 , Abuja, FCT.
