El-Rufai signs MoU with NNPC, GACN on gas expansion project in Kaduna

Nasir el-Rufai, governor of Kaduna state, has signed a memorandum of understanding (MoU) with the Nigerian National Petroleum Corporation (NNPC) and the Gas Aggregation Company of Nigeria (GACN) for gas utilisation and expansion projects.

Speaking at the signing ceremony on Thursday in Kaduna, the governor said the initiative brings nearer the availability of a significant additional source of energy for businesses and residents in Kaduna state.

He noted that gas provides a cost-effective option for powering factories, homes and vehicles.

“For the Kaduna State Government, this project is a welcome boost to our investment and job creation strategy,” he said.

“It will create jobs and provide skills for artisans who will work on the gas pipelines and associated infrastructure. Beyond that, this project will power the industries that have responded with enthusiasm to our investment promotion campaign.

“The Kaduna State Government has since 2015 worked to create two new industrial areas in the state. The Green Agro-Allied Industrial Zone (GAAIZ) is located in Chikun Local Government Area, along the Kaduna-Abuja highway, while the Green Economic Zone (GEZ) is in Igabi Local Government Area.

“GAAIZ is already hosting investments like the Olam project, the fertiliser plant of OCP of Morocco and DPAN, the joint venture between Dangote Industries and Peugeot for vehicle assembly.

“Just this week, the African Development Bank disclosed that it will be financing our Special Agro-Processing Zone within the GAAIZ. The Green Economic Zone is being developed as an industrial park for light manufacturing industries.”

El-Rufai expressed optimism that the gas expansion project would increase power supply capacity in Kaduna state.

“It will provide feedstock for the 215MW power plant in Kudenda. I am happy to inform you that the Kaduna State Government will also locate an 84MW power plant in Kudenda, also to be powered by gas. The combined effect of these two power plants will be to make power supply more reliable in Kaduna state,” he noted.

The governor thanked Mele Kyari, group managing director of NNPC, for the “remarkable developmental initiative” and appreciated the evident zeal of the GACN to deliver the project.