Monday, December 18, 2017 7:40 AM / Garba Shehu, SSAP (Media and
making a slow start, the Nigerian energy landscape is set for a major change
with the award of a USD 2,809,522,548.36 gas pipeline contract approved by the
Federal Executive Council as proposed by the Ministry of Petroleum Resources.
The ministry is under the direct supervision of President Muhammadu Buhari.
Ibe Kachikwu, the Minister of State who made the presentation to the cabinet
announced that the project is for the construction of a 40 inches pipeline
across 614 kilometers from Ajaokuta to Abuja-Kaduna-Kano. This should mark an
important landmark in the implementation of the first phase of the Nigerian Gas
Master Plan, NGMP approved in 2018.
contract approved under this massive, blockbuster investment is for the engineering,verification,procurement and construction of a 40 inches 30
kilometers Odidi to Warri gas pipeline expansion project. This one is to
transport additional gas supply from upstream producers to various demand
points at the cost of N7.7 billion and USD56 million.
projects, which can rightly be termed as being among of the President’s pet
projects is owed, in part to his vision and momentum back in his days as the
federal commissioner for Petroleum Resources. That time, Colonel Buhari led
think-tanks to plan the country’s gas future and initiated the contracts for
the laying of a massive network of petroleum pipelines, linking the length and
breadth of the country and laid the foundation for the construction of three
refineries, Warri, the second Port Harcourt refinery and the one in Kaduna in a
bold move to augment the the supply and distribution of petroleum products in
was the golden period of the country’s petroleum industry when domestic
refining not only met the requirements of home consumption but also produced excess
150,000 barrels of refined products for export.
bold step taken by the President on Wednesday seeks the integration of the
Eastern and Northern parts of Nigeria, which had suffered past neglect into the
gas economy. Gas pipeline infrastructure had been concentrated in the coastal
areas and the North and the East had been left largely untouched by the
industrial revolution that has come with the gas pipeline network. It is
therefore not surprising that the western part of the country is having more
All Progressives Congress, APC which had campaigned on the issue of inclusive
growth holds the view that the achievement of a balanced and equitable national
development can only come with a balanced growth of the states and the regions.
The party manifesto had identified the development of natural gas
transportation infrastructure as a key project in this regard. These contracts
for pipelines and LNG terminals to be set up at various points will therefore
expand opportunities for balanced national development to counter the backwardness
and geographical disadvantages of the North and the East. In line with the
country’s rapid growth in energy demand, the connection of the south and the
north should serve as a boost to the nation’s energy security.
increased energy transportation networks will be a shot in the arm for the
struggling manufacturing industry which suffers arising from the acute crisis
in the energy sector. It will cater to the needs of cement and fertilizer
plants; power plants, transportation systems and even household consumers
thereby increasing gas share in the country’s energy consumption mix. Gas which
is classified as clean energy will, in addition to the promise of energy
security, provide efficient fuel for power generation and reduce air pollution
leading to improved quality of life.
Trans-Nigeria Gas Pipeline (TNGP), the East-North network starts from Qua Ibeo
Terminal, QIT to Cawthorne Channel in Rivers traversing
Obigbo-Umuahia-Enugu-Ajaokuta and now Ajaokuta-Abuja-Kaduna-Kano is likely to
be completed in 2019. The extension of this network to the East and the North
is potentially the precursor of the Trans-African pipeline that will cross the
Sahara enroute Europe.
eyes have for many years been fixed on the European Gas consumer markets. The
contractor financing arrangement has been adopted and the project sponsor, the
Nigerian National Petroleum Corporation, NNPC and the Federal Government are
expected to reach common terms with the contractors on how they will be repaid
over a 15-year period.
the loan repayment is expected from revenue accruing to from both existing and
the expanding pipeline network, the NNPC and the Federal Government are
expected to meet financial gaps and guarantee return on net investment. The
Buhari administration came into office at a time when Nigeria faced a crisis of
inadequate and crumbling Infrastructure and has, as a matter of priority
embarked on a number of positive interventions to ease the infrastructure
crunch. The administration has been raising short term and long-term funding
for road projects, railway and power projects.
President is strongly optimistic that all these infrastructure projects will
increase the scope of economic activities and contribute to the overall
economic growth and development of the country. - GS