By Adewale Sanyaolu
NIPCO Gas Limited, Nigerian Gas Marketing Limited (NGMC), a subsidiary of NNPC and the Lekki Free Trade Development Company (LFZDC) at the weekend signed a deal to boost gas infrastructure development for industries within the LFZ corridor.
Managing Director of NIPCO Gas Limited, NIPCO Gas Limited, Mr. Najendra Verma, stated this at the Gas Infrastructure Development Agreement between it NGMC and LFZDC in Lagos at the weekend.
According to Verma, the deal which is to be completed in six months will see NIPCO provide natural gas supplies to industries and power plant, adding that the business engagement is certainly going to attract more and more industries to set up their facilities within LFZDC which will not only support the consortium but also help LFZDC in development of FZE area in exponential manner.
“This is also going to boost the industrialization and employment opportunities in Lekki area which in turn will boost the economy of the country. We believe that the development of collaboration between NGMC, NIPCO and LFZDC shall attract industries as LFZDC has many advantages which included proximity to the sea-port, export promotion zone advantages, improving road connectivity, thus providing better logistics for movement of raw materials and finished products.
This being a prestigious Government project, we feel really happy to be associated with this project and would really like to thank NNPC Gas Marketing Limited by making NIPCO Gas as their preferred partner while also LFZDC for partnering with the NGMC-NIPCO Consortium.
The NIPCO Gas MD explained further that NIPCO Gas in partnership with NGMC has the natural gas distribution network along Lagos-Ibadan Expressway and supplies gas to industries to meet their energy requirement.
He added that with the availability of natural gas distribution network on Lagos- Ibadan Expressway, many industries are setting up their facilities there and has resulted in the overall development of the area with increased number of employment resulting in the socio-economic upliftment of citizens.
According to him, industries are enjoying reliable, economical and clean fuel for powering their factories and other fuel needs, stressing that the use of natural gas has crashed industrial energy bills drastically and also contributed in lower equipment maintenance cost being the cleanest fuel.
Earlier in his remarks, Managing Director of NGMC, Mr. Justin Ezeala, said: ‘’We came into the gas business development in the zone with a big masquerade ( NIPCO Gas Limited), a fully owned subsidiary of NIPCO Plc, noted for its giant stride in gas marketing and infrastructure development to enhance gas value.”
“We actually came into business with LFZDC with extra value especially with our partner – NIPCO Gas Limited noted for her consistency in infrastructure upgrade in the natural gas sector . They have exhibited giant strides and consistency in pipeline construction.
We have worked for years and they remained one of the most consistent partner of ours .I have inspected the equipment on ground and once we sign, I am going to prevail on him on the NIPCO MD to move the equipment to site .We are proud to be associated with NIPCO,”.
Also speaking, Managing Director, LFZDC, Dai Shunfa, said: “We have been clamouring for gas all these years. We negotiated the agreement with NIPCO and NGMC and it has become a reality today. I believe this is a win-win situation for the parties. This will be a key facility for us. It means we have to bring more end users for NGMC and hope that the laying of the pipeline will be fast tracked ,”
“We have our power plant now, which is 24MW, we are using CNG and LNG, which is not sufficient for us. What we need is a pipeline gas and that was why we engaged this consortium to connect the gas to Lekki Free Zone and the power plant. With this infrastructure, we can attract more investors who will use the gas,”.
