‘CNG Mother Station In Akwa Ibom Will Expand FG Initiative, Extend Gas Infrastructure Benefits’

By Patrick Titus, Uyo

Compressed Natural Gas (CNG) Mother Station with 10million standard cubic feet daily (10 MMSCF/D) production capacity in Akwa Ibom State, will ultimately expand President Bola Ahmed’s initiative in the oil and gas downstream sector of the economy with benefits to Akwa Ibom state gas infrastructure.

This is possible as Nsik Oil & Gas Company Limited has taken delivery of the first consignment of equipment for the construction of plant which has this December ending set aside for its commissioning.

Speaking on Thursday during the arrival of the equipment to the site of project at Uquo Isi Edoho, Esit Eket Local Government Area of Akwa Ibom State, Mr. Kufre Sam, Special Adviser to the Minister of State for Petroleum Resources (Gas) on Political Affairs, said the facility when commissioned, would serve as a mother station for daughter stations across the state, expand CNG access to communities and businesses across the state’s 10 federal constituencies.

Sam linked the project to the Federal Government’s effort to provide an alternative to petroleum products and reduce transportation and production costs, saying the benefits could extend beyond the energy sector to the cost of goods and services. “That alone will transform to reducing the cost of transportation, reducing the cost of goods, reducing the cost of services,” he said.

According to Sam, the planned network could generate direct and indirect employment while creating opportunities for contractors, transporters, logistics operators, traders and other businesses around the daughter stations.

He added that the project was expected to have lasting economic implications through employment, revenue generation, logistics and skills development.

The Minister’s Political Adviser also commended the progress recorded and expressed optimism that the mother station would provide the foundation for a broader CNG distribution network across Akwa Ibom, with daughter stations planned to serve the state’s 10 federal constituencies and beyond.

Sam said the expansion would bring CNG infrastructure closer to communities, businesses and industries while supporting the Federal Government’s drive towards greater utilisation of natural gas as a transition fuel.

Speaking also, the Project Consultant, Mr. Mkposong Asuquo, said the arrival of the equipment has fulfilled an earlier commitment that the facility would move rapidly from groundbreaking to equipment installation and eventual commissioning.

The equipment, manufactured by China-based Original Equipment Manufacturer, CIMC, include compressors, dehydration and filtering units, heat exchangers and generating sets

Asuquo said the arrival of the equipment is a fulfillment an earlier commitment that the facility would move rapidly from groundbreaking to equipment installation and eventual commissioning.

He described the development as a significant milestone that has moved the project towards commissioning and the establishment of a wider CNG distribution network across Akwa Ibom State.

Asuquo, who spoke while receiving the equipment said the facility was conceived to harness pipeline gas readily accessible around the project location, noting that the site is about 500 metres from Frontier Energy and approximately three kilometres from Savannah Energy’s Accugas facility, from where the project is expected to obtain its gas feedstock.

He explained that the project is an equity partnership between Nsik Oil & Gas Company Limited, led by its Managing Director/Chief Executive Officer, Mr. Nsikan Johnny, and the Midstream and Downstream Gas Infrastructure Fund (MDGIF), under the supervision of the Ministry of Petroleum Resources (Gas), adding that the latest shipment followed the successful completion of a Factory Acceptance Test in China involving the project team and regulators.

“We have our first set of equipment from CIMC China, all the way from the Jiangsu Province in China. We actually went there, we did the Factory Acceptance Test with the regulators from NMDPRA, and by the time that was concluded, we looked at their excellent performance and we went into a contract with them,” Asuquo said.

According to him, the equipment had not merely arrived in Nigeria but had been cleared and transported directly to the project site, where it would form the core of the compression and processing system. He listed four reciprocating compressors, dehydration and filtration systems, heat exchangers and four generator sets among the equipment being deployed.

Asuquo said the power system would include gas-fired generation as well as an alternative gasoline-powered arrangement to ensure continuity of operations where there was any interruption or shortage in gas supply, describing the configuration as part of the project’s effort to guarantee reliability.

The consultant disclosed that the promoters had also ordered two trailers for the transportation of compressed gas from the mother station to planned daughter stations, explaining that the strategy was designed to ensure that the project’s output reaches motorists, industries and other consumers beyond the immediate host community.

He said the company was determined not to allow the project’s benefits to be concentrated in the hands of large off-takers alone, but to establish smaller distribution points that would bring CNG closer to consumers and support vehicle conversion, transportation and industrial activities.

“Our intention is also to feed most of the vehicles that are already CNG-powered,” he said, adding that the planned daughter-station model would create a wider market for the gas produced at the Esit Eket facility.

Asuquo said the project had already crossed several critical stages, including land acquisition, site clearing, geotechnical investigations, Environmental Impact Assessment, Front-End Engineering Design, Detailed Engineering Design, the Licence to Establish, Licence to Construct, gas supply arrangements, regulatory processes and Factory Acceptance Testing.

He lauded the Federal Government, particularly President Bola Ahmed Tinubu and the Ministry of Petroleum Resources, as well as the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, for their support towards the development of the gas sector.

He also acknowledged the contribution of the MDGIF, led by Mr. Wole Adama, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The consultant further thanked the Akwa Ibom State Government under Governor Umo Eno for its support and cooperation, while commending the leadership of Esit Eket Local Government Area and the host community of Uquo Isi Edoho, particularly the youths, community leaders and other stakeholders, for embracing the project and demonstrating a strong sense of ownership.

Speaking on the wider economic significance of the project, Asuquo noted that the facility could stimulate businesses and employment around CNG production, distribution, logistics and vehicle conversion, while expanding access to cleaner energy for motorists and industries.

He expressed optimism that the remaining stages would be completed soon, saying, “From now to a very short period of time, we’ll be gathering here again, by the grace of God, for the commissioning.”