NNPC unveils $16bn gas infrastructure investment opportunity

NNPC-Towers*To commence site clearing of Ogidinbge gas industrial park 

13 May 2013, Abuja – The Nigerian National Petroleum Corporation, NNPC has outlined a comprehensive gas infrastructure development programme projected to attract an industry wide investment outlay of over $16billion within the next four years.

Providing details of the gas infrastructure development drive in a presentation at the recently concluded Offshore Technology Conference in Houston, Texas, Dr. David Ige, Group Executive Director, Gas and Power of the NNPC, said the aspiration for gas development is anchored on the three point strategic focus of the Gas Master Plan.

Under the strategic themes of the GMP, it is envisaged that the plan will deliver gas to power for at least threefold increase in generation capacity by 2015, achieve reasonable level of gas based industrialization by positioning Nigeria as the undisputed regional hub for gas based industries such as fertilizer, petrochemicals and methanol by 2014. This item is the corner stone of the President’s Gas Revolution Agenda. The GMP is also focused on achieving high value export via LNG and regional export drives.

Dr. Ige said the ongoing work to consolidate the agenda has thrown up investment opportunities in the gas sector to the tune of $16billion.

“Opportunities for investments exist in the areas of Financial Services, Gas Transmission Pipelines, Pipe Milling and Fabrication Yards, Upstream Gas Development, LNG and LPG Plants and Gas Processing Facility/Gas Based Manufacturing Industries,’’ he said.

On the proposed Ogidingbe Gas based Industrial Park, the NNPC GED said that investment opportunities are available in the areas of Free Trade Zone Infrastructure, Port Infrastructure and Real Estate Development.

He stated that that the park which is designed to emerge as Africa’s largest Gas City ultimately aims to create the largest gas industrial park Sub-Saharan Africa with Fertilizer, Methanol and Power projects.

Dr. Ige explained that after initial choice of Koko as site for the project, Ogidingbe emerged as the new site due to the potential high cost of dredging the 90km Koko access route to the Ocean.

“Ogidingbe has some natural features which made it the choice location based on technical consideration. It has the desirable location by the sea hence better draught than Koko, it is also located by the Escravos River for inland access, it has proximity to existing gas infrastructure via the Escravos Lagos Pipeline System thus enabling relatively easy gas access with less pipeline infrastructure development cost,’’ he said.

On the disposition of the Delta State Government and the Host Community to the project, Dr. Ige described their outlook as supportive.

“The people of the area are excited about the project, His Royal Majesty, the Olu of Warri has been supportive and the State Governor has encouraged us in every step of the way, the Governor has already approved and issued the Cof O for the 2,700 hectare site.’’ He said.

The GED informed that phased work on the project with massive job creation and service opportunities would commence later this month with clearing of the access site in Ogidingbe, Warri South West Local Government Area of Delta State.

“Potential services required at this stage include: equipment rentals like bulldozers, chain saws etc; Labour services which includes catering, procurement services; Timber Processing and Marketing as well as hospitality services among many others.’’

Providing a timeline of activities for the project, he said it is envisaged that work would commence on the Ogidingbe FTZ full infrastructure development and Pre-Front End Engineering Design of the Central processing Facilities also known as CPFs in June this year while the Final Investment Decision for the CPFs is slated for June 2014.

In January 2015 construction work on the CPFs would begin and in March same year work begins on real estate development of the Ogidinbge area to service the industrial park while the construction work of the petrochemical complex tees-off in 2016/2017.

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