NIPCO Gas and NNPC Gas Marketing Limited (NGML) have launched the Lekki Gas Distribution Project to supply and distribute natural gas to industries in the Lekki Free Trade Zone area of Lagos. The project aims to reduce energy costs for industries and boost economic development in Nigeria.
The infrastructure, developed by NGML-NIPCO Gas JV, has a capacity of over 100 mmscfd, with a city gate station that can flow 5-25 mmscfd of gas, extendable to over 100 mmscfd. The Lekki Free Zone already has a 24 MW gas-based power plant.
NIPCO Gas Managing Director, Nagendra Verma, stated, “The supply of piped natural gas by NGML-NIPCO JV will certainly help in development of Lekki Free Zone and Free Zone Enterprise licensed by NEPZA (FZE) in an exponential manner. This is also going to boost the industrialisation and employment opportunities in Lekki area which in turn will boost the economy of the country.”
Verma highlighted the advantages of the project, including proximity to the sea-port, export promotion zone advantages, and improved road connectivity. He also mentioned that the NGML-NIPCO Gas JV has a natural gas distribution network along Lagos-Ibadan Expressway to aid supply of gas to industries.
The project is expected to attract industries to set up facilities in the Lekki Free Zone, resulting in overall development of the area, increased employment, and socio-economic upliftment of citizens. Verma stated, “Industries are enjoying reliable, economical and clean fuel for powering their factories and other fuel needs. The use of natural gas has reduced industries’ fuel bills drastically and lower equipment maintenance cost being the cleanest fuel.”
Additionally, NIPCO Gas is expanding AutoCNG stations across Nigeria under the Presidential CNG initiative. Verma said, “NIPCO Gas is sure that with support of supply of piped natural gas to industries, NGML-NIPCO Gas JV will be able to keep and maintain lower AutoCNG prices. Also, the increased usage of domestic gas in industrial and automobile sector will certainly help the Federal Government in reduction in fuel importation bill and fuel subsidy burden.”
LFZDC Managing Director, Dai Shunfa, expressed his happiness that the gas supply would further boost operations in the free trade zone and reduce energy costs for companies. “By providing a reliable and affordable source of energy, we are helping to create a more competitive and sustainable business environment.”
