LAGOS – NIPCO Gas Limited, Wednesday commissioned its 24MW Lekki Power Plant and Lekki Gas Distribution Project as par of its efforts to deepen gas utilization in the country.
The commissioning, which was done with support of NNPC Gas Infrastructure Company (NGIC),followed the partnership NIPCO Gas entered with NNPC Gas Marketing Limited (NGML) for supply and distribution of natural gas in Lekki Gas Distribution Area in June, 2022.
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NGML-NIPCO Gas JV has executed Gas Infrastructure and Development Agreement with Lekki Free Zone Development Company (LFZDC) in November, 2022 to provide natural gas supplies to industries and Power plant.
The infrastructure developed by NGML-NIPCO Gas JV has capacity of over 100 mmscfd, while 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.
Lekki Free Zone has a gas-based power plant of 24 MW capacity.
Nagendra Verma,the Managing Director of NIPCO Gas Ltd explained that the milestone marks a significant step towards unlocking and harnessing the nation’s abundant natural gas while economic development of Nigeria.
He said, the NGML-NIPCO Gas JV is sure that the infrastructure created will attract more industries to set up their facilities within and outside LFZDC.
He also said that, the supply of piped natural gas by NGML-NIPCO JV is certainly help in development of Lekki Free Zone and Free Zone Enterprise licensed by NEPZA (FZE) in exponential manner.
According to him, this will also boost the industrialization and employment opportunities in Lekki area, which in turn will boost the economy of the country.
He said: “NIPCO Gas believes that the collaboration between NGML-NIPCO Gas shall attracts industries to set up their facilities, as Lekki Free Zone has many advantages like proximity to the sea-port, export promotion zone advantages, improving road connectivity-hence providing better logistics for movement of raw materials or finished products etc.
“NGML-NIPCO Gas JV has the natural gas distribution network along Lagos-Ibadan
“Expressway and supplying gas to industries to meet their energy requirement. This gas distribution is also being extended to Ibadan, Oyo State and Abeokuta, Ogun State presently. With the availability of natural gas distribution network, lot of industries are setting up their facilities there.
“This is resulting in overall development of the area with increased number of employments resulting into socio-economic upliftment of citizens. Industries are enjoying 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 in lower equipment maintenance cost being the cleanest fuel.
“NIPCO Gas in partnership with NNPC Gas Marketing Limited is also expanding AutoCNGStations across Nigeria under Presidential CNG initiative. NIPCO Gas is sure that with support of supply of piped natural gas to industries, NGML-NIPCO Gas JV will be able to keep and maintain lower AutoCNG prices.
Also, the increased usage of domestic gas in industrial and automobile sector, will certainly help the Federal Government in reduction in fuel importation bill and fuel subsidy burden.
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“Supply of natural gas to Lekki Free Zone being a prestigious project, NIPCO Gas feels honored and grateful to be associated with this project and would really like to thank NNPC Gas Marketing Limited by making NIPCO Gas as their preferred JV partner, and a great thank to LFZDC for partnering with the NGML-NIPCO Gas JV.
“We are deeply grateful and would like to especially thank NNPC Gas Infrastructure Company for their unhindered support and guidance and for expediting the connectivity to this prestigious project. We hope with deepening in utilization of domestic natural gas will certainly help in overall development and economy of Nigeria”.
In his remarks, the Managing Director, NNPC Gas Marketing Limited, Mr Justin Ezeala, stated the event was a milestone in the annals of gas infrastructure development in the country.
He lauded NIPCO Gas for the effort infused in the gas project to actualise gas to Lekki Free Trade Zone.
He said that NIPCO Gas remains a remarkable and dependent company,saying that “we are indebted to NIPCO Gas commitment and professionalism.
“We are proud of all the parties involved in this success story.We knew the gas business revolves around us and that we could deliver seamlessly to the myriad of industries in the zone.
“We came into gas business development in the zone with a big renowned player, NIPCO Gas, that is noted for its giant strides in gas marketing and infrastructure development to enhance gas value,” he said.
Ezeala ,said NNPC Gas Marketing came into business with LFZDC with an extra value alongside its partner – NIPCO Gas – a fully owned subsidiary of NIPCO Plc, which is noted for its consistency in gas infrastructure upgrade.
“NIPCO has exhibited giant efforts in pipeline construction and penchant for customer collections. We have worked together for years and they remained one of the consistent partners of ours,” Ezeala noted.
“We are proud to be associated with NIPCO in view of their antecedents in gas infrastructure development. We have trust in them and look forward to this commissioning of the milestone project,” he added.
Also, the Managing Director NNPC Gas Infrastructure Company (NGIC),who was represented by the Executive Director P&C,Jamal Bello, said that the gas distribution by NGML-NIPCO Gas JV will bring more investors into the country’s gas sector.
He expressed NGIC’s commitment to supply and transport required gas for the development of Nigeria’s economy.
Speaking, the Managing Director, LFZDC, Dai Shunfa, said the project will enhance development in the zone and also impact positively, adding that the gas pipeline had being connected and ready for business.
He commended NIPCO Gas Company for making sufficient gas available for business operations in the zone.
He said: “We are ready to take off The gas project will contribute to the economy and also boost local community capacity. We negotiated the agreement with NIPCO and NGML. It has become reality today.
“I believe this is a win-win situation for the parties. This will be a key facility for us,” said Mr Shunfa. We have over 100 companies in Lekki Free Zone and about 75 companies are in operations”.
