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Home » NNPC JV Completes 18km Gas Pipeline

NNPC JV Completes 18km Gas Pipeline

by Joshua
March 15, 2021
in Oil and Gas

Nigerian Gas Marketing Company Limited, a subsidiary of the Nigerian National Petroleum Corporation, and a subsidiary of Axxela Limited, Transit Gas Nigeria Limited have completed an 18km gas pipeline in Ogun State.

The pipeline has a capacity of 150 million standard cubic feet per day, and runs from Ibefun to Rite Foods Limited’s large-scale factory in Ososa, Ogun State.

A statement by Axxela said the first gas had been delivered through this pipeline to Rite Foods Limited, adding that with consistent gas supply, the fast-moving consumer goods company would achieve significant energy cost-savings.

Axxela Chief Executive Officer, Bolaji Osunsanya, highlighted the company’s commitment to growth and industrialisation.

He said, “This venture is in firm alignment with our near-to-long term market expansion strategy, and emphasises our push to broaden our asset portfolio and strengthen our market play within the gas sector.

“Axxela/NGMC pioneered gas distribution in the Greater Lagos area, and our present positioning enables us significantly increase our industrial and commercial client footprint across the south-western corridor.

By providing the gas advantage, we are enabling the development of self-sustaining industrial clusters to bolster Nigeria’s industrialisation and socioeconomic empowerment.”

The Sagamu Gas Distribution Zone development is a joint venture between NGMC and TGNL which commenced operations in 2019 by delivering gas to growing industrial users, according to the statement.

Speaking on the NGMC/TGNL JV and the new pipeline grid, the Managing Director, NGMC, Mr Faruk Usman, was quoted as saying, “As part of our strategy, we are delighted to pioneer and implement initiatives with private players, which is a clear indication of our willingness to collaborate and ensure the success of Nigeria’s Gas Expansion Programme.

“The SGDZ will contribute to the development of the Sagamu – Ijebu Ode axis by facilitating industrial growth, cleaner energy generation, and fostering community employment through gas availability.”

The statement said in line with Axxela’s and NGMC’s commitment to the International Finance Corporation’s performance standards, Corporate Social Responsibility projects had been implemented across the host communities of the operation.


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