In a bid to meet the need for an aggressive expansion of the gas pipeline infrastructure required to assure constant supply of the nation’s vast natural gas resources to boost power supply and industrialisation, a sum of $7 billion will be needed, says the Nigerian National Petroleum Corporation (NNPC).
According to the NNPC, the funding would come from both the government and the private sector, adding that a number of investors had indicated interest to fund the gas infrastructure expansion.
NNPC also disclosed that efforts were ongoing to create a regional hub for gas-based industries, which would be the largest gas industrial park in Africa with fertiliser, petrochemical, methanol and power projects, which is geared towards transforming the gas sector.
The gas industrial park which is to be located at Ogidigben, Delta State, will house 350 megawatts (MW) power plant to be built by Chevron and a central processing facility, port infrastructure free trade zone (FTZ) base infrastructure and other support services.
David Ige, group executive director in charge of gas and power at NNPC, who spoke on Tuesday at the 4th International Conference and Exhibition of Free Trade Zone organised by Century 21 System Communications Limited and Oil & Gas Free Zone Authority, said meeting the power sector requirement was a focus area for the gas sector and that good progress was being made.
“Steady progress has been made in delivering the critical pipeline infrastructure. This will address many of the gas deliverability challenges.”
He said the NNPC was working to bridge the gap between increasing power demand in the country and gas supply. “We need to build infrastructure to boost natural gas production and supply. There is a lot of pipeline activity going on.”