Sopuruchi Onwuka
Ancient partners in virtual gas supply to unconnected domestic market zones in the country, NIPCO Plc and the Nigerian National Petroleum Company (NNPC) Limited, have announced further expansion of gas distribution to the Lekki Free Trade Zone (FTZ) industrial layout, Lagos State.
The partners also commissioned the Lekki Power Plant to ease supply of electricity to the area. The investments mark a major integration of production portfolio in the operations of Nipco Plc in Nigeria.
The Oracle Today gathered from secondary sources that NNPC Gas Infrastructure Company (NGIC) and NIPCO has commissioned the twin projects to bolster energy utilities in the fast evolving industrial axes in the lekki area,
This infrastructure developed by NGML-NIPCO Gas JV has a capacity of over 100 mmscfd. The City Gate Station constructed by NGML-NIPCO Gas JV has a present capacity to flow 5 mmscfd to 25 mmscfd of gas further extendable to over 100 mmscfd. This is to enable the Lekki Free Zone gas-based power plant with the capacity of 24 MW to operate effectively.
According to a statement from NIPCO, this commissioning is a milestone significant enough to unlock and harness the nation’s abundant natural gas for the economic development of Nigeria.
Speaking at the commissioning ceremony on Wednesday, Nagendra Verma, Managing Director of NIPCO Gas Limited, said the deal would facilitate gas distribution to the Lekki area of Lagos State.
According to him, NGML-NIPCO Gas JV is sure that this infrastructure will surely enhance and attract more industries to set up their facilities within and outside Lekki Free Zone Development Company (LFZDC).
“The supply of piped natural gas by NGML-NIPCO JV will certainly help in the development of Lekki Free Zone. NIPCO Gas believes that the collaboration between NGML-NIPCO Gas shall attract industries to set up their facilities along Lekki Free Zone axis given the advantages of proximity to the sea-port, export promotion zone advantages, improving road connectivity-hence providing better logistics for movement of raw materials or finished products.
“Industries in this axis will also enjoy reliable, economical and clean fuel for powering their factories and other fuel needs. The use of natural gas has reduced the industries’ fuel bills drastically and also contributed to lower equipment maintenance costs being the cleanest fuel,” Verma said.
He noted that the gas distribution is also being extended to Ibadan, Oyo State and Abeokuta, Ogun State industrial environments. According to him, this business engagement will attract more industries to set up their facilities within LFZDC, which will not only support the consortium but also develop the Free Zone area.
NGML-NIPCO Gas JV partnership had in November 2022 executed Gas Infrastructure and Development Agreement with Lekki Free Zone Development Company (LFZDC). This agreement was to provide natural gas supplies to industries and Power plant along the Lagos FTZ area.
Dai Shunfa, Managing Director, LFZDC had said the proposed gas infrastructure development will enhance business development in the Ibeju Lekki community and also boost economic growth in Lagos.
According to him, the gas project will attract industries as LFZDC has many advantages like proximity to the seaport, export promotion zone advantages, improving road connectivity providing better logistics for the movement of raw materials or finished products among others. “By providing a reliable and affordable source of energy, we are helping to create a more competitive and sustainable business environment” Shunfa had said.
NIPCO Gas has a natural gas distribution network in Benin City, Edo State supplying gas to industries for their power and fuel requirements. Presently 7 CNG stations in Edo State, 1 CNG station in Delta state, 1 CNG station in Ogun State and 2 CNG stations in Kogi State are operational.