Kunle Allen Appointed CEO of Nigeria Gas Company as FG Moves to Boost Supply

The Minister of Petroleum Resources, Diezani Allison Madueke has disclosed the steps her ministry is taking in order to bridge the gas supply gap in the country. She disclosed that government is strengthening the Gas Aggregation Company of Nigeria (GACN), a DPR-regulated company of the Ministry of Petroleum Resources with responsibility for gas sourcing and allocation, as well as operator of the commercial framework of the Gas Master Plan. She also disclosed that Kunle allen, a former Project Manager with Shell had been appointed the CEO of the GACN.

The minister said, “delivery of gas to assure sufficient, uninterrupted supply to existing, as well as new thermal generating plants has been a special focus area of mine and the Ministry of Petroleum Resources. Up to recent times, gas supply to power plants outstripped demand to the extent that significant volumes of available gas remained unutilised on a daily basis. However a close analysis of the supply chain has revealed that over the last 10 years or so, there has been significant misalignment between power projects and gas supply sources.

“Even so, with the National Integrated Power Projects (NIPP) coming on stream, there are indications of increasing pressure to meet up with the quantity of gas required as fuel to power the plants and at the correct locations.

“To quickly and holistically address the misalignment, I am immediately deploying a 12-month Domestic Gas Supply Emergency Plan. During this period, the Ministry of Petroleum Resources, together with the NNPC and the gas producing companies will deploy extraordinary measures to accelerate opportunities for quick wins in order to ameliorate the potential gap between gas demand and supply.”

“Accordingly, in addition to its traditional gas demand management role which includes processing requests from gas buyers, managing gas supply/demand allocation, as well as facilitating Gas Supply Aggregation Agreement (GSAA) negotiations, the GACN will, henceforth, be accountable for the following: identify gas sources/suppliers and design incentives for accelerated domestic gas delivery, drive the implementation of the findings of the recently constituted Emergency Gas Committee with emphasis on short and medium term gas supply, and on a sustained basis, ensure integration as well as alignment between gas demand and supply to ensure robustness of longer term gas supply to power, and provide implicit data to enable the DPR to be more proactive in compelling suppliers to meet domestic gas supply obligations”.