Hope for improved power supply to companies and entities operating in Lekki Free Zone axis of Lagos State has risen as NIPCO Gas Limited has signed an agreement with the NNPC Gas Marketing Limited (NGML) and Lekki Free Zone Development Company (LFZDC) to develop gas infrastructure along the axis for power generation.
The gas pipeline, which is expected to be completed in the next six months, will supply gas to the Lekki Free Zone and feed a 24-Megawatt (MW) power plant in that axis.
Speaking at the signing ceremony held in Lagos at the weekend, the Managing Director of NIPCO Gas, Limited, Mr. Nagendra Verma said the deal would facilitate the distribution of gas to Lekki area of Lagos State.
He recalled that NIPCO Gas Limited pioneered the supply of Compressed Natural Gas (CNG) supply in Nigeria.
“NIPCO Gas has natural gas distribution network in Benin City, Edo State and supplying gas to industries for their power and fuel requirement. “Presently seven CNG stations in Edo State, one CNG station in Delta State, one CNG station in Ogun State and one CNG station in Kogi State is operational. In line with federal government’ss NGEP programme, additional CNG stations are in various stages of construction in Oyo, Lagos and Akwa Ibom states as well as the FCT,” he explained.
“Our intention is to supply gas, which is economical, cheaper and environmental friendly. It also enhances efficiency of equipment and will ultimately boost the economy of this country. We are developing gas infrastructure to meet the power requirement of the industries,” he said.
Verma said: “This 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 in the development of Free Zone area in exponential manner. 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 for making NIPCO Gas their preferred partner and a great thank to LFZDC for partnering with the NGML-NIPCO Consortium,” Najendra added.
On his part, the Managing Director of NNPC Gas Marketing Limited, Mr. Justin Ezeala disclosed that when his company entered into partnership on gas business development with NIPCO Gas, which he described as “a big masquerade,” which is noted for its giant strides in gas marketing and infrastructure development, “all other small masquerades” stepped aside from the zone.
Managing Director of LFZDC, Dai Shunfa expressed happiness that the deal with NIPCO and NNPC has become a reality.
“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 NGML consortium,” he added.