- FG cuts gas prices for electricity generation
- New gas price now $2.18 per standard cubic feet
- Sylva says electricity generation will improve under the new price regime
The Federal Government has approved the reduction of domestic gas prices for electricity generation from $2.50 to $2.18 per standard cubic feet (scf). The Minister of State for Petroleum, Timipre Sylva, made this know at the 2021 Gas Stakeholders Forum in Kano state. The forum also discussed the optimisation of the 614km Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
Sylva stated that with the new gas price regime, the electricity sector would improve the generation subsector. He added that reducing the gas price was made following the negotiations with the Nigeria Labour Congress (NLC).
Speaking on the AKK pipeline project, Sylva stated that the project is in line with the Federal Government’s gas agenda. He stated that the project would resuscitate moribund industries in northern Nigeria and create employment for the region’s youths. In addition, the project is expected to supply over 2.2 billion cubic feet of natural gas, which will improve electricity generation by 3,600MW.
The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, who spoke at the event, stated that the project would be completed on schedule. He urged investors to seize the investment opportunities.