NIPCO Gas Limited Inaugurates Lekki Gas Distribution Project
NIPCO Gas Limited, in partnership with NNPC Gas Marketing Limited (NGML), has officially commissioned the Lekki Gas Distribution Project and the Lekki Power Plant, marking a significant milestone in Nigeria’s energy sector. This project, which was inaugurated on August 28, 2024, is part of the ongoing efforts to harness Nigeria’s abundant natural gas resources to fuel industrial and economic growth.
The partnership between NIPCO Gas and NGML began in June 2022, with a focus on supplying and distributing natural gas in the Lekki Gas Distribution Area. Following this, the NGML-NIPCO Gas Joint Venture (JV) signed a Gas Infrastructure and Development Agreement with the Lekki Free Zone Development Company (LFZDC) in November 2022 to ensure the provision of natural gas to industries and the Lekki Power Plant within the Free Zone.
The newly commissioned infrastructure developed by the NGML-NIPCO Gas JV has a capacity of over 100 million standard cubic feet per day (mmscfd). The City Gate Station, constructed by the JV, currently has a capacity to deliver 5 mmscfd to 25 mmscfd of gas, with potential expansion to over 100 mmscfd. The Lekki Free Zone also features a gas-based power plant with a capacity of 24 MW, consisting of 2 x 12 MW units.
This project is expected to significantly contribute to the industrialization and economic development of the Lekki area and beyond. By providing reliable and clean energy, the NGML-NIPCO Gas JV is set to attract more industries to establish their facilities within the Lekki Free Zone and surrounding areas, further boosting employment opportunities and socio-economic development in the region.
The JV’s gas distribution network along the Lagos-Ibadan Expressway, which supplies natural gas to industries in Lagos, Ibadan (Oyo State), and Abeokuta (Ogun State), has already facilitated the setup of numerous industrial facilities. This expansion has led to the overall development of these areas, creating jobs and improving the standard of living for local citizens. The use of natural gas has also helped industries reduce their fuel bills and maintenance costs, as it is a cleaner and more economical fuel source.
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In addition to the Lekki project, NIPCO Gas, in collaboration with NGML, is expanding AutoCNG stations across Nigeria under the Presidential CNG initiative. The JV is confident that the availability of piped natural gas to industries will help maintain lower AutoCNG prices and contribute to reducing the Federal Government’s fuel importation bill and fuel subsidy burden.
NIPCO Gas expressed its gratitude to NNPC Gas Marketing Limited for selecting it as a preferred JV partner and to LFZDC for their collaboration. The company also acknowledged the critical support provided by the NNPC Gas Infrastructure Company, which was instrumental in the successful execution of this prestigious project. NIPCO Gas believes that increased domestic natural gas utilization will play a vital role in Nigeria’s overall economic development.
