Hope for improved power supply to companies and entities operating in the Lekki Free Zone axis of Lagos State has risen as NIPCO Plc and the Nigerian National Petroleum Company (NNPC) have completed a gas infrastructure along the axis for power generation.
The gas pipeline, which has a capacity of over 100 Million standard cubic feet per day (mmscfd), is planned to supply gas to the Lekki Free Zone and feed a 24 megawatts (MW) power plant in the axis.
Speaking at the signing ceremony on Wednesday, Nagendra Verma, managing director of NIPCO Gas Limited said the deal would facilitate the distribution of gas to the Lekki area of Lagos State.
“NGML-NIPCO Gas JV is sure that the infrastructure created is certainly going to attract more and more industries to set up their facilities within and outside Lekki Free Zone Development Company (LFZDC). The supply of piped natural gas by NGML-NIPCO JV will certainly help in the development of Lekki Free Zone and Free Zone Enterprise licensed by NEPZA (FZE) exponentially,” Verma said.
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He added, “NIPCO Gas believes that the collaboration between NGML-NIPCO Gas shall attract industries to set up their facilities, as Lekki Free Zone 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 noted that the gas distribution is also being extended to Ibadan, Oyo State and Abeokuta, Ogun State industrial environments.
“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,” Verma said.
According to him, this 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.
Dai Shunfa, managing director, LFZDC said the proposed gas infrastructure development will enhance business development in the Ibeju Lekki community and also boost economic growth in Lagos.
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“The gas project will attract industries as LFZDC has many advantages like proximity to the seaport, export promotion zone advantages, improving road connectivity providing better logistics for movement of raw materials or finished products among others,” Shunfa said.
He added, “By providing a reliable and affordable source of energy, we are helping to create a more competitive and sustainable business environment.”
NIPCO Gas has a natural gas distribution network in Benin City, Edo State supplying 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 2 CNG stations in Kogi State are operational.
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