NIPCO Gas, NGML extend pipeline network to Abeokuta, target lower energy costs for industries

By Adewale Sanyaolu   NIPCO Gas Limited, in partnership with NNPC Gas Marketing Limited (NGML), has extended its natural gas distribution network to Abeokuta, Ogun State, opening up industries along the Sagamu-Abeokuta corridor to cheaper and cleaner energy.   The Managing Director/Chief Executive Officer of NIPCO Gas Limited, Mr Nagendra Verma, disclosed this following the completion and commissioning of the pipeline network, describing the development as a major boost to industrial gas supply and the Federal Government’s domestic gas utilisation drive.   Verma said the project would provide industries along the corridor with access to reliable and more economical natural gas, potentially reducing their energy costs, improving operational efficiency and strengthening their competitiveness.   He said the expansion was part of the company’s commitment, alongside NGML, to developing critical gas infrastructure and unlocking the potential of Nigeria’s natural gas resources for industrial growth.   The gas distribution network is operated under a joint venture between NIPCO Gas and NGML, which secured a gas distribution licence from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) under the Petroleum Industry Act (PIA).   The 25-year exclusivity granted under the licence, according to the company, provides the regulatory certainty required to support long-term investment in gas distribution infrastructure.   Verma said the joint venture was also advancing other pipeline projects to expand access to natural gas in key industrial and commercial centres across the country.   He disclosed that work was ongoing on the Sagamu-Ibadan pipeline project, which is expected to be completed by mid-2027.   The company is also developing and expanding gas distribution infrastructure in the Lekki Free Trade Zone and Benin City as part of efforts to extend natural gas availability to more businesses and industrial clusters.   The Abeokuta project comes amid renewed efforts by the Federal Government to increase domestic gas utilisation and position natural gas as a critical driver of industrialisation, particularly as manufacturers seek alternatives to more expensive energy sources.   Verma expressed appreciation to the Ogun State Government, relevant government agencies, host communities and other stakeholders for their cooperation in delivering the project.   He reaffirmed NIPCO Gas and NGML’s commitment to expanding gas distribution infrastructure and supporting the development of a more competitive, gas-powered Nigerian economy.       Tags:

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