• Saturday, April 27, 2024
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BusinessDay

Completion of Nigeria’s longest gas pipeline and its impact on the economy

Transit Gas Commissions another 12km Natural Gas Pipeline in Ogun State

In line with the present administration’s policy trust to deliver infrastructure to boost the economy and improve oil production capacity and increase the supply of electricity, the Nigerian National Petroleum Corporation (NNPC) has completed the construction of Escravos-Lagos pipeline project phase 2 (36’x342km), and delivered for immediate transmission of gas to power stations in the country.

The project, delivered to the NNPC by the contractor, Zakhem Construction Nigeria Limited, is a major gas pipeline that has capacity to serve many power stations within the South West region.

Group managing director of the NNPC, Mele Kyari, who had promised the delivery of the project in a statement in May this year, said the completion of the gas pipeline project was a confirmation to the fact that the present administration was desirous of improving the state of infrastructure in the country.

According to Kyari, the project will provide solution to the lack of natural gas at various power plants that have been completed within the South West region, which of course will translate to a boost in the economic activities and create employment among the youths in the labour market.

This is the longest pipeline project the Federal Government has constructed, and this achievement has come with a lot of commitment and sacrifice on the part of government, which is why we shall continue to ensure that this particular Excravos Lagos pipeline is used to pipe gas to power plants in the area, he said.

The project, executed by one of the biggest pipeline construction company in Nigeria, Zakhem Construction Nigeria, is said to be monumental to drive the growth and development needed in the oil and gas industry to boost generation, transmission and the distribution of electricity in Nigeria, at a time when the power sector is struggling to survive.

The engineering procurement and construction contract executed by Zakhem will empower some of the major off-takers of gas routed through this line, like Egbin Power, Ikeja Industrial Area (with Gaslink as a major off-taker). Other beneficiaries include industries and factories located within the region and around Lagos and Ogun states, and Dangote Refinery and Petrochemical.

One of the major policy trusts of this administration has been resuscitating the economy, and it has over the years demonstrated capacity and commitment to drive the growth and development of the nation’s economy and as well create employment, which has been the bane of successive administrations in Nigeria.