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NNPC to build N6b gas pipelines in Ogun

Posted by By Yetunde Ebosele on 2006/07/12 | Views: 595 |

NNPC to build N6b gas pipelines in Ogun

PLANS have been concluded by the Nigerian National Petroleum Corporation (NNPC) to invest about N6 billion.....

PLANS have been concluded by the Nigerian National Petroleum Corporation (NNPC) to invest about N6 billion ($45 million) into the construction of gas pipelines to service Abeokuta, Ogun State and its environs.

Mooting this idea before Governor Gbenga Daniel in Abeokuta the capital yesterday, the Managing Director of the NNPC's subsidiary, Nigerian Gas Company (NGC), Mr. Chris Osa Ogienwonyi sought co-operation from the state government for the acquisition of land where the pipes would be laid.

The 35-kilometre long gas pipes, according to Ogienwonyi, would be laid along the Escravos-Lagos Pipeline route, which transmits gas from Warri to Lagos.

Besides, he explained that the project, which would be fully funded by the Federal Government, would have a production capacity of 250 million standard cubic feet per day (mmscfd) of gas.

He also asked the governor and the state Chamber of Commerce to help identify possible gas consumers in the state.

Explaining the benefits inherent in the use of natural gas, Ogienwonyi noted that the siting of the pipelines in Abeokuta would help bring about massive industrialisation in the state.

He noted that two out of the existing 14 huge direct customers of NGC were in Ogun State and that the Abeokuta project was one out of the many others being proposed for the state.

Specifically, Ogienwonyi said the West African Portland Cement Company and Nigeria Gas were currently on the network of the company in Shagamu and Ewekoro areas of the state.

Explaining further, he said about 30 gas sales purchase agreement would be signed in Ogun State in the next three months, adding that 16 preparative customers have already been identified in Ijebu Ode, Shagamu area of the state.

In his response to the proposal, Daniel applauded the initiative of the gas company and pledged to ensure that all the necessary tools needed for the realisation of the project in the state would be facilitated.

Besides, he said a master plan on land acquisition to guide against the problems associated with it has already been drawn by the administration.

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