Total floats $900m gas pipeline
…Boosts gas delivery to Alaoji Power plant
TOTAL Exploration and Production Nigeria Limited (TEPNG) has completed a section of its $900 million Northern Option Pipeline (NOPL) to supply gas to Alaoji National Integrated Power Plant (NIPP), along the Imo River, Abia State.
The Deputy General Manager, Policy, Media and Coordination, (TEPNG), Charles Ogan, who confirmed this in a statement yesterday, said the feat would aid the gas utilization agenda and boost power supply in the country.
“Total confirmed that a section of its Northern Option Pipeline (NOPL) from kilometre 38 (at Obigbo) to kilometre 50 (at Imo River), was completed on Monday, January 12, 2015 and is now ready for gas inflow to the National Integrated Power Plant (NIPP) at Alaoji along the Imo River in Abia State,” he stated.
He quoted the Managing Director, (TEPNG), Elisabeth Proust, as saying: “This milestone will help bring to reality, the Federal Government’s aspiration of improved electric power supply in Nigeria and demonstrates Total’s commitment to meeting its promises to deliver Better Energy”
The NOPL is a 24 inch wide, 50 kilometer long pipeline under construction by Total E&P Nigeria Limited on behalf of the NNPC/TEPNG Joint Venture. When completed later this year, the project will deliver 100 million cubic feet of gas per day to this strategic power plant.
In an effort to ensure early gas supply to newly built power plants, the Federal Government requested Total E&P Nigeria to complete a section of the NOPL from kilometre 38 (at Obigbo) to kilometre 50 at Imo-River where the line connects to Nigeria Gas Company (NGC) facilities.
This is the point that allows gas inflow to the Alaoji Power Plant. This intervention for early gas required that TEPNG mobilized additional resources to fast track the works in order to meet the deadline despite numerous changes associated with the difficult terrain.
The gas now being supplied to the Alaoji Power Plant during this interim period will come from Seven Energy, while NGC will transport the gas through their pipeline and the section of our NOPL.
Proust had earlier told The Guradian that the company had an agreement with the Alaoji Power Plant as its first customer, while many more customers are on the queue.
“We have contacted other industrial users, not just power plants because when you have the energy, it stimulates development. My plan is that by 2017, we should evacuate 300 million cubic feet of gas through the pipeline.
“It’s a huge pipeline crossing several communities. So it was not so easy. The cost of the pipeline is now around $900 million. To get return on such investment in pipeline, we need effectively good clients and an improved gas price.
“The improvement on gas price is good but it cannot cover the budget of the pipeline. I hope that with increased industrial uptake we will be able to achieve a better price and we can offset the cost of investment in the pipeline,” she said.