NIPCO Gas Limited, a subsidiary of NIPCO Plc has signed a gas pipeline project agreement with the NNPC Gas Marketing Limited (NGML) and the Lekki Free Zone Development Company (LFZDC).
The project is expected to be completed in six months to supply gas to the Lekki Free Zone (LFZ) and feed a 24 megawatts (MW) power plant.
The managing director of NIPCO Gas, Nagendra Verma, at the signing ceremony in Lagos, said the deal was to provide natural gas to industries and power plants.
“We believe that the collaboration between NGML-NIPCO and LFZDC shall attract industries as LFZDC has many advantages like proximity to the sea-port, export promotion zone advantages, improving road connectivity – hence providing better logistics for movement of raw materials or finished products,” Verma said.
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The managing director of NGML, Justin Ezeala, said: “We (NNPC Gas Marketing Limited) came in as a dominant gas marketing firm to do business to effectively market and distribute natural gas to major industrial users.
“We know the gas business revolves around us and know that we could deliver gas seamlessly to the myriad of industries in the zone.”
The managing director of LFZDC, Dai Shunfa, said: “We have been crying for gas all these years. We have our power plant now, which is 24MW, we are using CNG and LNG, which is not sufficient for us.
“What we need is pipeline gas and that is why we engaged this consortium to connect the gas to Lekki Free Zone, not only to connect the power plant. With this infrastructure, we can attract more investors who will use the gas.”
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