Nigeria awards over $2.5bn gas pipelines contracts

Clara Nwachukwu

28 February 2012, Sweetcrude, LAGOS - The Federal Government has awarded over $2.5bn contracts for various gas pipeline projects in the country. This is in line with its policy on gas monetisation, as laid out in the Gas Master Plan (GMP).

The Executive Director, Gas Development, Nigerian National Petroleum Corporation (NNPC), Dr. David Ige, who disclosed this at the just-concluded Nigeria Oil and Gas (NOG) 2012 international conference and exhibition in Abuja, said the projects were in line with government’s effort to harness Nigeria’s enormous gas resources as well as building the infrastructure base to support such development.
Among the pipelines contracts so far awarded are:

*Oben-Geregu – 36″ 136km at $245.31million completed last year

*Olorunshogo – 24″ 41km at $54.04million to be completed by March end

*ECPS-A – 101km at $258million to be completed in a couple of weeks

*ELPS 2 – 26″ 324km at $382.39million to be completed in November

*Oben/Ob – 127km at $662.26million to be completed in 2014

*Imo River – 24km at $52.94million

*QIT/Obigbo – 54km at $153million

*Oso/QIT – 51km at $235million, and many others.

The NNPC gas boss did not however, disclose the identities of the contractors handling the projects or when the contracts were awarded, but gave the assurance that government was resolved in its bid to make Nigeria the regional hub for gas-based industries.

The Minister of Power, Prof. Bart Nnaji had cited gas supply shortages as the bane of sustainable electricity supply, saying the significant success achieved in the recent times had been lost again on account of it.

Admitting to the gas issues, Ige said that 2012 will be the toughest for the power industry in terms of gas supply. “2012 will be one of the toughest periods in the power sector in terms of gas to power.”

Ige, who spoke on the gas development in Nigeria, in reference to the Gas Master Plan, particularly as regards gas to power, said government has adopted a short, medium and long term approaches to deal with the gas supply issues over the next four years, ending by 2015.

He said that part of the plan is to reinforce excessive gas supply from the Eastern network, and taken to the western region that is in short supply to close up shortages to the power plants.

He estimated that about 1,500MW of power is stranded on account of gas supply shortages, adding that in the short term, government planned to stabilize supply from the existing facilities within the next four weeks.

In the medium term, he said government planned to expedite actions on the East west gas pipeline, which he hoped would be completed by 2013. While in the long term, by 2015 and beyond, as more gas fields come on stream, government would have “created a platform for a market-led unhindered power growth,” given that many gas infrastructure contracts have been awarded to facilitate set objectives. In view of the scepticisms over the workability of the Gas Master Plan, Ige asserted, “We have a credible and implementable plan, which will become obvious over time.”

  • emmy junior

    i hope these projects wont turn out to be abandoned after this political dispensation, and the petroleum minister should be made to mention the contractors responsible so that they will held responsible on failure to meet up with their contract terms.