By Adewale Sanyaolu
NIPCO Gas Limited, in partnership with NNPC Gas Marketing Limited (NGML), has officially inaugurated a major natural gas project at the Lekki Free Zone Development Company (LFZDC).
The new facility, with a capacity of 100 million standard cubic feet per day (mmscf/d), is poised to revolutionize industrial operations in the region and reduce power costs by 25%.
The inauguration follows a Gas Infrastructure and Development Agreement signed in November 2022, which outlined plans to supply natural gas to both industries and the Lekki Power Plant. Mr. Nagendra Verma, Managing Director of NIPCO Gas Limited, highlighted that this project builds upon the previously established City Gate Station by NGML and NIPCO Gas. The system’s capacity will now expand from 5 mmscfd to over 100 mmscf/d, supporting a 24 MW power plant.
Verma stated; “This project marks a pivotal moment in leveraging Nigeria’s natural gas resources to drive economic growth. The enhanced infrastructure will attract more industries to LFZDC, spur industrialization, and create job opportunities, thereby boosting the national economy.”
He also praised NNPC Ltd’s Group Chief Executive Officer, Mr. Mele Kyari, and the Executive Vice President of Gas, Power, and New Energy for their vital support in advancing the NGML-NIPCO Gas partnership.
LFZDC Managing Director, Mr. Dai Shunfa, noted that the new gas infrastructure will significantly improve capacity utilization for approximately 100 firms within the zone. Before this project, only 75 firms were operational.
The introduction of natural gas is expected to draw in 25 additional companies, alleviate previous limitations caused by inadequate gas infrastructure, reduce energy costs by 25%, and enhance job creation and government revenue through increased taxation.
Mr. Justin Ezeala, Managing Director of NNPC Gas Marketing Ltd, hailed the project as a major milestone in Nigeria’s gas sector. He commended NIPCO Gas for their dedication and expertise, stating, “This partnership has been crucial in advancing our gas infrastructure. NIPCO Gas’s commitment to excellence in gas marketing and infrastructure development has significantly contributed to our success.”
Ezeala expressed confidence in the project’s ongoing success and its positive impact on the Nigerian gas industry, highlighting the added value of this collaboration.