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NIPCO commits $50m to promote energy mix

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By Timothy Akintola

Investment aimed at boosting diversification for Nigeria’s energy plan.

In the bid for reliability in energy supply, there has been numerous urges for a diversification of electricity generation. While Nigeria possesses a host of energy resources, it has become a major contradiction that these resources have not been adequately utilized to improve the efficiency of energy supply. In fact, the federal government was putting in place, plans to diversify the supply of energy to include renewable energy for acceleration of social and economic growth in the country.

With immense necessity for investing in the promotion of energy mix, the Nigerian Independent Petroleum Company (NIPCO) has reportedly decided to invest over $50 million in gas infrastructure, to further boost the diversification plan of Nigeria’s energy transitioning, as well as reduce the reliance on fossil fuel. Mr. Suresh Kumar, the Managing Director (MD) of NIPCO, made this known during a facility tour of the firm, whilst in the company of company of the NIPCO Gas Ltd MD, a subsidiary of NIPCO, Mr. Nagendra Verma.

NIPCO intensifies investment in gas infrastructure to promote FG’s agenda.

He noted that with the federal government planning to halt fuel subsidy, natural gas, either piped for auto or industrial purposes were bound to be a better utilized choice of fuel, due to its safety, availability, economic and environmental advantages of the transition fuel to the country. Mr. Suresh emphasized that the firm had heavily invested in gas infrastructure, in line with the declaration of the federal government for a 2021 to 2030 “Nigeria’s Decade of Gas”, a period where the government has structured for boosting domestic and export gas supplies.

The NIPCO MD stated that decade of gas agenda by the federal government was witnessing a boost, with NIPCO intensifying its investment in the gas infrastructure to further propagate the agenda. He disclosed that the company had introduced Compressed Natural Gas (CNG) facilities across the country, so as to make cars operate on gas, whilst also expanding its operations in the supply of natural gas and the construction of new pipeline facilities in strategic locations across the country.

Use of indigenous gas to reduce subsidy burden on federal government.

Mr. Suresh indicated that firm was also investing using local and international currencies to ensure the development of the country’s natural gas, with more projects on the offing. He explained that over $50 million had been spent on natural gas infrastructure, stating his conviction that there were numerous potentials in the country that could be exploited for gas utilization to further develop the economy. He added that with the use of indigenous gas, the burden of subsidy on the federal government would be reduced.

Further, he said that the company had about 19,500 ethic tonnes of combined storage capacity for LPG, with about 10 loading bays capable of trucking out 4000 tonnes on a daily basis. The Manager of NIPCO Gas, Mr. Nagendra also noted that the firm presently possessed about 14 CNG filing stations across various states in the country, with another 6 CNGs under construction. He also disclosed that about 7000 vehicles were presently running on CNG, and another 350 NIPCO truck fleet all operating on gas.

Gas pipeline infrastructure in Lekki Free Trade Zone almost completed.

The NIPCO Gas MD thus noted that the currently developing gas pipeline infrastructure in the Lekki Free Trade Zone in Lagos which was already close to being completed, he also revealed that the firm was in the process of constructing a propane tank worth about 5000mt capacity, the biggest in Nigeria, so as to meet the requirement of federal government to mix certain propane quantity with butane for domestic gas. He promised that the propane gas would be delivered over the next three months to improve the product’s utilization for domestic use.

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