Nigeria: NNPC to Finance New Gas Pipeline Project

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The Nigerian National Petroleum Corporation (NNPC) has indicated that up to 1000 kilometres (km) of new gas lines that would be added to Nigeria’s gas line network would be funded through a new framework of contractor financing and then their construction costs paid off through agreed transportation tariff.

It also stated that all the available gas powered electricity generation plants in Nigeria are currently connected to permanent gas supply pipeline, adding that its drive for more power plants to be connected to gas lines would eventually put up to 2,700 megawatts (MW) of electricity to the national grid soon.

Speaking at the recent 2017 conference and annual general meeting of the Nigerian Society of Engineers (NSE) in Abuja, the Group Managing Director of the NNPC, Dr. Maikanti Baru, also explained that the corporation has completed and commissioned about 500km of gas pipelines between 2010 and 2017.

Baru said the exercise was part of its aggressive plan to expand Nigeria’s gas pipeline infrastructure, and bring more industries to connect to gas as fuel for their various productions.

“Upon completion the remaining projects are expected to add over 1000 kilometers to the nation’s gas pipeline network,” said Baru.

On funding, he said the NNPC would adopt Public Private Partnership (PPP) models in building and expanding the gas infrastructures

 

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