NIPCO Gas Limited has announced the signing of an agreement with the NNPC Gas Marketing Limited (NGML) and Lekki Free Zone Development Company (LFZDC) to construct a gas pipeline.
The gas pipeline supply gas to the Lekki Free Zone and feed a 24 Mega Watts (MW) power plant in the axis.
The Managing Director, NIPCO Gas, Mr Nagendra Verma, explained that the agreement would aid smooth distribution of gas to Lekki area of Lagos State.
He mentioned that the intent of his company is to supply gas, which is economical, cheaper and environmentally friendly,adding that it will also enhance efficiency of equipment and ultimately boost the economy of Nigeria
NIPCO is developing gas infrastructure to meet the power requirement of the industries,he said,adding that the business engagement will attract more industries to set up their facilities within LFZDC, which will not only support the consortium, but also develop the free zone area.
He added:“This is also going to boost the industrialisation and employment opportunities in Lekki area, which in turn will boost the economy of the country.We believe that the collaboration between NGML-NIPCO and LFZDC shall attracts industries, as the free zone has many advantages like proximity to the sea-port and export promotion zone advantages.
“It will also improve road connectivity, hence providing better logistics for movement of raw materials or finished products.We feel really happy to be associated with this project, and would like to thank NNPC Gas Marketing Ltd. for making NIPCO Gas their preferred partner, and thanks also to LFZDC for partnering with the NGML-NIPCO Consortium”.
He said his company pioneered Compressed Natural Gas (CNG) supply in Nigeria and had natural gas distribution network in Benin City, Edo, and was supplying gas to industries for their power and fuel requirement.
He also said the company currently has seven Compressed Natural Gas stations in Edo, one in Delta,Ogun and Kogi .
Speaking, Managing Director, NGML, Mr Justin Ezeala, explained that his company collaborated with NIPCO because it was a reliable firm and an industry leader in pipeline laying.
He added:“We appreciate the LFZDC for its confidence in us and we will monitor the process to ensure a fruitful project”
Managing Director, LFZDC, Dai Shunfa, informed that his company had been in need of sufficient gas supply for many years.
He said the negotiated agreement with NIPCO and NGML has turned the gas demand a reality.
He added:“I believe this is a win-win situation for the parties. This will be a key facility for us,” said Shunfa.