NNPC set to invest $ 225 mm in Ogun and Oyo CNG projects

Jul 18, 2006 02:00 AM

The Nigerian National Petroleum Corporation (NNPC) has commenced moves to invest about $ 225 mm on the Ogun and Oyo gas pipeline projects, which is to kick off anytime soon. This was disclosed during a scheduled visit to the offices of the Governors of Ogun and Oyo states respectively by the management team of the Nigerian Gas Company (NGC), a subsidiary of the NNPC.
The team was led by the Managing Director, Engr. Chris Osa Ogiemwonyi, and the visit was on the possibility of a swift commencement of the project as well as seeking the state governments' cooperation in the area of logistics and identification of possible gas consumers.

During the visit to Ogun state, it was disclosed that 75 % of NGC gas supplies to commercial customers in Lagos Axis is consumed in Ogun state, with reference to the Ewekoro and Shagamu cement factories as well as several SNG customers scattered around Agbara/Otta areas of Ogun state, Hence, it would require an estimated cost of about $ 45 mm to carry out the 35km by 24 inches diameter ELP-Abeokuta pipe-line project with a capacity of 250 mm cfpd.
And after a visual presentation by the NGC team, the Government of Ogun state was more than eager to see to the commencement of the project, promising their full support for the project. A vividly elated Governor Gbenga Daniel confirmed to the team that Ogun state was, "in fact, ready for the project, yesterday".

The main project levers of the project is that it can support Federal Government’s fertilizer plant in Ogun state, availability of gas as fuel and feedstock for industrial growth. It can also serve as a focal point to the business of Compressed Natural Gas (CNG). The NGC has already identified six potential consumers in Abeokuta, with over sixteen prospective customers in Ijebu-Ode and Lagos-Shagamu expressway axis.
However, on a scheduled visit to Ibadan, the Oyo state capital, for a meeting with the Executive Governor on the same issue, it was disclosed by the Managing Director of NGC that the Oyo state project is estimated to gulp a whooping $ 180 mm. The project, tagged the ELP-Jebba, is billed to commence in a few months time with a twelve month construction life-span and will actually take off from the PS4 situated in Imorin between Shagamu and Ikorodu Junction, straight to Jebba.

Engr. Ogiemwonyi told the Executive Governor that four potential industrial consumers are already identified in Ibadan, while twelve other prospective industrial consumers have been identified within the Ibadan metropolis. Hence, he requested that the government should kindly give necessary support to the project, especially in the areas of OPL consent, ROW (land acquisition) and identification of possible gas consumers.
He also appealed to the government to partner with the private sector in order to set-up a world scale fertilizer, methanol, and IPP plants in Oyo state, as well as to help the project get the people's understanding, support and cooperation through public enlightenment campaign, which will, in turn, help to develop the gas culture in the state.

The Governor, in his response, stated that Oyo state has been yearning for the opportunity of gas supply to the state and a committee was since set up for the actualisation of the project. He made a copy of the committee's report available to the NGC team to serve as a guide in implementing the project.
He also identified several potential companies that would definitely benefit from the project amongst them are, British American Tobacco, Seven-Up Bottling Company, Procter & Gamble etc.

Also, on hand to receive the NGC team and lend their support for this very laudable project were the Executive members of the Ibadan chamber of commerce and Industry led the President, Chief Olaitan Alabi, who disclosed after the meeting that there are about sixteen functional companies presently in the chamber, while about six have gone under over time.
His words: "We don't need to convince our member companies to switch to gas as this is exactly what they havebeen waiting for and outside the chamber, there are still other companies that are not members and are still interested in gas. In all, we're talking over a hundred companies on a larger scale and regarding this, we'll be having another meeting with the NGC to look at other available perspective."

Compressed Natural Gas (CNG) is the latest form of energy and it is gradually gaining ground in this part of the world, as its awareness keeps spreading.
With several companies performing creditably well in this arm of the energy sector and led by the Nigerian Gas Company (NGC), it becomes imperative for corporate organizations, private industries, factories, and with the full privatization of the power sector, IPP's as well as fertilizer plants for the enhancement of agriculture all should start making plans to change over to CNG, as it is the cheapest and most environment-friendly source of energy that is available in abundance in Nigeria.

The NNPC, through the NGC, has started a massive campaign across the country to sensitize the people and governments of various states as well as establishments and organizations cutting across all sectors of the economy on the need to join hands and support this laudable project.
And with the Federal Government's zero flare target by 2008, the time, certainly, seems right to start implementing the gas objective.

Source: Vanguard
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