NNPC completes 539km of gas pipelines, targets more 1,000km

NNPC completes 539km of gas pipelines, targets more 1,000km In its aggressive gas pipeline infrastructure expansion across the country, the Nigerian National Petroleum Corporation (NNPC) has completed, commissioned and delivered 500km of gas pipelines since 2010, the Group Managing Director (GMD), Dr. Maikanti Baru, said. He disclosed in Abuja during the 2017 Conference and Annual General Meeting of the Nigerian Society of Engineers (NSE) that the accelerated expansion of the gas pipeline system was sequel to the directive of then President Olusegun Obasanjo, who mandated the oil companies operating in-country to support the power generation effort. Presenting a paper titled, “Revival and Development of Local Manufacturing Industries: Chemical and Petrochemical Industries” during the conference, the GMD said the directive became imperative as adequate power supply was key to reviving the moribund industries. He listed the pipelines so far delivered to include the 196km Oben Gas Plant to Geregu Power Plant pipeline, 110km Escravos-Warri-Oben gas pipeline, 128km Ukanafun-Calabar pipeline, 50km Emuren-Itoki pipeline, 31km Itoki-Olorunshogo pipeline and 24km Imo River-Alaoji gas pipeline. In a statement by the NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu, Baru disclosed that all available thermal power plants in the country have been connected with permanent gas supply pipelines. He noted that intent on expanding the network to all parts of the country, about 2,700mw of thermal electricity would be added to the national grid in the near future to exponentially generate more power for new industrial revolution and sustainable economic growth Government’s earlier initiative in this regard, he recalled, led to the growth of Nigeria’s gas-fired power plants, which gradually scaled up thermal power contribution to over 70 per cent of the total power generated today. Meanwhile, the planned expansion of the gas infrastructure would be bolstered with the ongoing construction of the 127km East-West OB3 gas pipeline joining Oben to Obiafu-Obrikom, Baru said. This strategic infrastructure, he explained, would be completed by 2018 Q4, while the 363km looping expansion of Escravos-Lagos Gas Pipeline System would be delivered by Q1 2018. Also, the 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, Baru said. On completion, the remaining projects would add over 1000km to the nation’s gas pipeline network. Baru also disclosed that the corporation was adopting the Public Private Partnership (PPP) models in building and expanding the gas infrastructures. According to him, the development of the Ajaokuta–Abuja-Kaduna–Kano (AKK) gas pipelines, which was the first under the arrangement, would be built through financing by selected contractors, who would recover their cost through transportation tariff. Once these projects are completed, a nationwide gas infrastructure backbone would be in place to enable the establishment of a fully integrated gas pipeline infrastructure grid across nationwide.