NIPCO, NGML, LFZDC sign multi-million dollar gas deals
By Bisi Adewunmi
Nigerian Government Gas Utilisation Policy has received a boost as the NIPCO Gas Limited (Consortium) signed a tripartite agreement with the NNPC Gas Marketing Limited (NGML) and Lekki Free Zone Development Company (LFZDC) to build pipeline infrastructure and supply gas to industries in the Lekki area of Lagos.
The gas pipeline, which is expected to be completed in the next six months, is planned to supply gas to industries in and around the Lekki Free Zone and feed a 24 Mega Watts (MW) power plant in that axis.
Managing Director, LFZDC, Dai Shunfa, said, “We have been crying for gas all these years. We negotiate the agreement with NIPCO and NGML and it has become reality today. I believe this is a win-win situation for the parties. This will be a key facility for us. It means we have to bring more end users for NGML consortium, expressing hope that the laying of the pipeline will be facilitated,
“We have our power plant now, which is 24MW, we are using CNG and LNG, which is not sufficient for us. What we need is a pipeline gas and that was why we engaged this consortium to connect the gas to Lekki Free Zone, not only to connect the power plant. With this infrastructure we can attract more investors who will use the gas.”
Managing Director, NGML, Justin Ezeala, said, “Our partner (NIPCO) is a reliable firm and an industry leader in pipeline laying. We have worked with them for years and we discovered that, among our partners, they are the most consistent to market. We appreciate the LFZDC for its confidence in us and we will monitor the process to ensure a fruitful project.”
Speaking at the signing ceremony in Lagos, the Managing Director, NIPCO Gas, Nagendra Verma said the pact would aid smooth distribution of gas to Lekki area of Lagos State.
“Our intention is to supply gas, which is economical, cheaper and environmental friendly. It also enhances efficiency of equipment and will ultimately boost the economy of this country. We are developing gas infrastructure to meet the power requirement of the industries,” he said.
The consortium said some equipment have already been procured for the project and would be moved to site, immediately after the signing ceremony.
