NIPCO Gas Ltd. has signed an agreement with the Nigerian National Petroleum Corporation(NNPC) Gas Marketing Ltd. (NGML) to connect the Lekki Free Zone Development Company (LFZDC) to a gas pipeline in the next six months for a power plant.
Mr. Nagendra Verma, Managing Director, NIPCO Gas, made this known on Sunday, at the signing of the MOU in Lagos.
According to him, they planned to supply gas to the Lekki Free Zone and feed a 24 Megawatts (MW) power plant in the axis. He added that the pact would aid smooth distribution of gas to the Lekki area of Lagos State.
He said, “Our intention is to supply gas, which is economical, cheaper and environmentally friendly.
“It will also the enhance efficiency of equipment and ultimately boost the economy of this country.
“We are developing gas infrastructure to meet the power requirement of the industries,” said Verma.
The NipCo Gas MD noted that the deal will attract more industries to set up their facilities within LFZDC, which will not only support the consortium but also develop the Free Zone area.
“This is also going to boost the industrialisation and employment opportunities in the Lekki area, which in turn will boost the economy of the country.
“We believe that the collaboration between NGML-NIPCO and LFZDC shall attracts industries, as the free zone has many advantages like proximity to the sea-port and export promotion zone advantages.
“It will also improve road connectivity, hence providing better logistics for movement of raw materials or finished products.
The NIPCO boss said NIPCO Gas pioneered Compressed Natural Gas (CNG) supply in Nigeria.
He added that NIPCO Gas had a natural gas distribution network in Benin City, Edo, and was supplying gas to industries for their power and fuel requirements.
“Presently 7 CNG stations in Edo, 1 CNG station in Delta, 1 CNG station in Ogun and 1 CNG station in Kogi are operational,” he said.
Mr. Justin Ezeala,Managing Director, NGML, on his part said the company partnered NIPCO because it was a reliable firm and an industry leader in pipeline laying.
“We appreciate the LFZDC for its confidence in us and we will monitor the process to ensure a fruitful project,” he said.
Dai Shunfa, Managing Director, LFZDC, disclosed that the trade zone has been company had been in need of sufficient gas supply for many years.
“We negotiated the agreement with NIPCO and NGML. It has become reality today.
“I believe this is a win-win situation for the parties. This will be a key facility for us,” said Shunfa.
Shunfa said some equipment had already been procured for the project and would be moved to site immediately after the signing ceremony.