NNPC to begin gas processing as subsidiary posts N13.29b profit
Nigerian National Petroleum Corporation (NNPC) will divest into gas processing with its subsidiary, Nigerian Gas Company (NGC) following acquisition of equity in some gas companies.
The Chairman, Board of Directors NGC and NNPC Chief Operating Officer (COO), Upstream, Roland Ewubare, who disclosed this at the 24th yearly general meeting of the company in Abuja yesterday, said the company is looking at expanding its footprint in the nation’s gas sector and, in turn, boost its revenue by diversifying into gas processing services.
Ewubare had acquired equity in a number of gas processing companies, including Assa North-Ohaji South (ANOH) Gas Processing Company (AGPC), Makaraba Gas Processing Project and the Sapele Gas Compression Project.
“Completion of these gas processing projects are expected to significantly increase NGC’s revenue and boost the Federal Government’s Economic Recovery and Growth Plan”, he said.
Ewubare noted that the financial performance for 2018 saw a profit of N13.29 billion, adding that “The profit after tax for the year ended 31st December, 2018, increased from N6.11bn in 2017 to N13.29bn representing an increase of 117 per cent.”
According to him, the increase in the company’s revenue and profit was attributed to increase in the volume of gas transported, cost reduction initiatives, effective pipeline operations and maintenance, and cordial relations with host communities.
Managing Director of NGC, Dr. Salihu Jamari, who also spoke at the occasion, said the improvements recorded in the company’s performance were a testimony to the commitment by the management to deliver value to shareholders and stakeholders.
The completion of gas infrastructure projects such as Phase two of the Escravos-Lagos Pipeline System (ELPS 2C), Obiafu-Obrikom-Oben (OB3) Pipelines and the Ajaokuta-Kaduna-Kano (AKK) Pipeline would further boost the company’s profitability, he added.