NIPCO, NGML to crash energy costs for industries, float Lekki Gas Project

Industries in the Lekki Free Trade Zone area in Lagos will begin to enjoy reduced energy costs, as NIPCO Gas in partnership with NNPC Gas Marketing Limited (NGML) commissioned the Lekki Gas Distribution Project for supply and distribution of natural gas in the Lekki area.

The 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 fivemmscfd to 25 mmscfd of gas further extendable to over 100 mmscfd. Lekki Free Zone is having gas-based power plant of 24 MW capacity.

Speaking at the commissioning, Managing Director, NIPCO Gas Limited, Nagendra Verma, said the milestone marks a significant step towards unlocking and harnessing the nation’s abundant natural gas while boosting the economic development of Nigeria.

While acknowledging the efforts of the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, the NIPCO Gas boss said: “The supply of piped natural gas by NGML-NIPCO JV will certainly help in development of Lekki Free Zone and Free Zone Enterprise licensed by NEPZA (FZE) in an exponential manner.

“This is also going to boost the industrialisation and employment opportunities in Lekki area which in turn will boost the economy of the country,” Verma stated.

He said NIPCO Gas believes that the collaboration between NGML and NIPCO Gas would attract industries to set up their facilities in the Lekki Free Zone due to advantages like proximity to the sea-port, export promotion zone advantages, improved road connectivity-hence providing better logistics for movement of raw materials or finished products among others.

According to him, the NGML-NIPCO Gas JV also has the natural gas distribution network along Lagos-Ibadan Expressway to aid supply of gas to industries to meet their energy requirement.

Stating that gas distribution is also being extended to Ibadan, Oyo State and Abeokuta, Ogun State, he said: “With the availability of a natural gas distribution network, a lot of industries are setting up their facilities there. This is resulting in overall development of the area with increased number of employment resulting in 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 industries’fuel bills drastically and lower equipment maintenance cost being the cleanest fuel,” he stated.

According to Verma, NIPCO Gas in partnership with NNPC Gas Marketing Limited is also expanding AutoCNG stations 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,” he stated.

Managing Director, Managing Director of LFZDC, Dai Shunfa, expressed his happiness that the gas supply would further boost operations in the free trade zone and reduce the energy cost incurred by the companies.

“By providing a reliable and affordable source of energy, we are helping to create a more competitive and sustainable business environment,” he added.