NIPCO Gas in partnership with Nigeria Gas Marketing Limited (NGML) has signed a landmark Gas Infrastructure Development Agreement with Lekki Free Zone Development Company (LFZDC) to provide natural gas supplies to industries and Power plant.
According to Najendra Verma, managing director of NIPCO Gas Limited while speaking during the signing ceremony, he said, this business engagement is certainly going to attract more and more industries to set up their facilities within LFZDC which will not only support the consortium but also helps LFZDC in the development of FZE area in an exponential manner.
“This is also going to boost the industrialization and employment opportunities in Lekki area which in turn will boost the economy of the country.” He said
He said: “We believe that the development of collaboration between NGML-NIPCO & LFZDC shall attract industries as LFZDC has many advantages like proximity to the sea-port, export promotion zone advantages, improving road connectivity-hence providing better logistics for movement of raw materials or finished products etc.
He stated that this being a prestigious Government project, they feel really happy to be associated with it and would really like to thank NNPC Gas Marketing Limited for making NIPCO Gas its preferred partner and a great thank to LFZDC for partnering with the NGML-Nipco Consortium.
Justin Ezeala, managing director of NGML, in his remark, thanked everyone at the ceremony. He described the Lekki Free Trade Zone as a beautiful bride that has so many suitors, and everybody wants to partner with it. He said the NGML came into the business with something extra because his company is the dominant firm in the gas market in Nigeria.
He said we cannot talk about gas marketing without talking about NNPC gas marketing itself, as the gas easily revolves around the company. He said the company is debt free, a situation he said the company’s customers can attest to.
“More importantly, we came with a partner that is an industry leader in pipeline laying and marketing connection, which is NIPCO Gas. We have worked with NIPCO for years, and among all our partners it is one of the most consistent to market. In all the areas that we have been doing joint marketing, they connect us easily. So we are very proud of NIPCO. So when we came with them to LFZDC, we told them that every other person has been running around them. I am happy that the relationship between the parties has been formalized”
Commenting on the project, Haruna Abdulrahman, executive director, Commercial and Business Development for the NNPC /NGML, said the event was not an event of today, stating that: “It started yesterday, today we are here and tomorrow we would be there.”
He said he does not see the consortium and the LFTZDC having any challenges because of the personalities involved in the project would make it come to reality.
The elated managing director of Lekki Free Trade LFTZDC, Dai Shunfa said with this development the power plant at the zone which is 24 megawatts plant using compressed natural gas (CNG) would have the advantage of using natural gas piped into it. He said the best for the zone is pipeline gas.
According to him, the reason why the company engaged the consortium of Nigeria Gas Marketing Company and Nipco Gas company, was to ensure that the gas seamlessly gets to Lekki Free Trade Zone and also attract other companies to use natural gas which is a cleaner fuel.
“This is a win-win solution,” he said. He believes as the piped gas is getting to the trade zone there would be more investors coming to the place to do business and NGML /NIPCO would be able to sell more gas to investors.
The cost of the six kilometer gas pipeline project which is to be financed by the consortium of NGML /Nipco was however not disclosed.
Already there is a T-point within the zone where the gas pipeline will be connected to a major gas pipeline grid where the gas supply would be transported to the zone. The project is to be completed within six months.
The Free Trade Zone which is about 30 square kilometer houses 111 companies that have registered with the zone. Out of these registered companies, 55 of them are already in operation.
NIPCO Gas Limited, a subsidiary of NIPCO PLC is in the business of supply and distribution of natural gas since 2009. Nipco Gas is pioneer in CNG supply in Nigeria.
NIPCO Gas has natural gas distribution network in Benin City, Edo State and supplies gas to industries for their power and fuel requirements. Presently 7 CNG stations in Edo State, 1 CNG station in Delta state, 1 CNG station in Ogun State and 1 CNG station in Kogi state is operational.
In line with Federal Governments NGEP program, additional CNG stations are in various stages of construction in Oyo State, Lagos state, Abuja FCT, Akwa Ibom state etc.
Nipco Gas in partnership with NGML has a natural gas distribution network along Lagos-Ibadan Expressway supplying gas to industries to meet their energy requirement. With the availability of natural gas distribution network on Lagos Ibadan Expressway, a lot of industries are setting up their facilities there. This has resulted in the overall development of the area with increase in the number of employments resulting into socio-economic upliftment of citizens. Industries are enjoying reliable, economical and clean fuel for powering their factories and other fuel needs. The Use of natural gas has reduced the industries fuel bills drastically and also contributed to lower equipment maintenance costs being the cleanest fuel. The increased usage of domestic gas is helping the government in reduction in fuel importation and fuel subsidy burden also,
