NNPC Completes 539km Of Gas Pipeline Projects In Seven Years
The Nigerian National
Petroleum Corporation (NNPC) has said it has so far completed, commissioned and
delivered 500 kilometres of gas pipelines between 2010 and to date as part of
an aggressive expansion of gas pipeline infrastructure across the country.
Dr. Maikanti Baru,
Group Managing Director of NNPC, stated this on Tuesday in Abuja at the 2017
Conference and Annual General Meeting of the Nigerian Society of Engineers
(NSE).
In the paper
entitled, “Revival and Development of Local Manufacturing Industries: Chemical
and Petrochemical Industries”, Baru, who is a fellow of NSE, said the
accelerated expansion of the gas pipeline system was sequel to a directive of
the then President Olusegun Obasanjo, who mandated the oil companies operating
in country to support the power generation effort.
Baru said the
directive became imperative after the government realized that adequate power
supply was key to reviving the moribund industries.
The NNPC GMD listed
the gas pipelines so far delivered by the corporation to include the
196-kilometre Oben Gas Plant to Geregu Power Plant pipeline, 110-kilometre
Escravos-Warri-Oben gas pipeline, 128-kilometre Ukanafun-Calabar pipeline,
50-kilometre Emuren-Itoki pipeline, 31-kilometre Itoki- Olorunshogo pipeline
and 24-kilometre Imo River-Alaoji gas pipeline.
Read also : Fake Drugs Return To Streets With A Vengeance
He noted that
available thermal power plants in the country are currently connected with
permanent gas supply pipelines.
He added
that with NNPC driving the realization of Federal Government’s aspiration to
expand the gas pipeline network to all parts of the country, about
2,700megawatts of thermal electricity was expected to be added to the national
grid in the near future to exponentially generate more power for new
industrial revolution with a view to achieving sustainable economic growth
He noted that the
earlier government’s initiative in this regard populated the seeds for the
growth of Nigeria’s gas-fired power plants, which gradually scaled up thermal
power contribution to more than 70% of total power generated in the country.
He spoke on the
planned expansion of the gas infrastructure, saying the lines would be
bolstered with the ongoing construction of the 127-kilometre East-West OB3 gas
pipeline joining Oben to Obiafu-Obrikom.
He explained that the
strategic infrastructure was scheduled for completion by fourth quarter of
2018, while the 363-kilometre looping expansion of Escravos-Lagos Gas Pipeline
System was expected for delivery by quarter 1 in 2018.
He also
said that Engineering, Procurement and Construction (EPC) tender
evaluation process for Ajaokuta-Abuja-Kaduna-Kano (popularly known as AKK683km)
gas pipeline contract, and the EPC tender process for the Qua Iboe Terminal to
Obiafu/Obrikom (QIT-Ob/Ob gas pipeline) gas pipeline were ongoing.
According to him, upon
completion, the remaining projects are expected to add over 1000 kilometres to
the nation’s gas pipeline network.
On funding of
oil and gas development projects, Baru said the corporation was adopting the
Public Private Partnership (PPP) models in building and expanding the gas
infrastructure.
He said the
development of the Ajaokuta–Abuja-Kaduna–Kano (AKK) gas pipelines which were
the first in line under the arrangement would be built through contractor
financing where the selected contractors would be providing financing to build
the line and recover their cost through transportation tariff.
“This model will be
extended to other major backbone pipelines in the Nigerian Gas Master Plan,’’
he said.
Post a Comment