Commissioning of Lekki Gas Distribution Project and Lekki Power Plant
NIPCO Gas entered into a partnership with NNPC Gas Marketing Limited (NGML) in June 2022 for the supply and distribution of natural gas in the Lekki Gas Distribution Area.
Following this, the NGML-NIPCO Gas JV signed a Gas Infrastructure and Development Agreement with the Lekki Free Zone Development Company (LFZDC) in November 2022 to provide natural gas supplies to industries and the power plant in the area.
We are proud to announce that, with the support of NNPC Gas Infrastructure Company (NGIC), the NGML-NIPCO Gas JV has successfully commissioned the prestigious Lekki Gas Distribution Project and the Lekki Power Plant on 28th August 2024.
The commissioning of this prestigious Gas Distribution Project and Power Plant at Lekki was held in presence of Managing Director NGML Mr. Justin U Ezeala; Managing Director NGIC represented by Executive Director Planning & Commercial NGIC Mr. Jamal Bello; Managing Director Lekki Free Zone Development Company Mr. Dai Shunfa; Managing Director NIPCO Gas Ltd Mr. Nagendra Verma; General Counsel NGML Mrs. Deborah Usman and General Manager Projects & Operations NIPCO Gas Ltd Mr. Sanjay Tarat.
The infrastructure developed by the NGML-NIPCO Gas JV has a capacity of over 100 mmscfd. The City Gate Station, constructed by the JV, currently has the capacity to flow 5 mmscfd to 25 mmscfd of gas, which can be expanded to over 100 mmscfd. Lekki Free Zone is having a gas-based power plant with a capacity of 2 x 12 MW i.e., 24 MW, which is sufficient to meet the current power needs of all industries.
This milestone marks a significant step towards unlocking and harnessing the nation’s abundant natural gas while contributing to Nigeria’s economic development. The NGML-NIPCO Gas JV is confident that the newly operational gas infrastructure will attract more industries to the Free Zone. The supply of piped natural gas by the joint venture is expected to exponentially boost the development of the Free Zone Enterprise licensed by NEPZA (FZE).
Furthermore, this project will enhance the industrialization and create employment opportunities in the Lekki area, thereby contributing to the overall economic growth of the country.
The NGML-NIPCO Gas JV also operates a natural gas distribution network along Lagos-Ibadan Expressway and supplying gas to industries to meet their energy requirement. This gas distribution network is further extended to Ibadan, Oyo State and Abeokuta, Ogun State presently. With the availability of natural gas distribution network, a lot of industries are setting up their manufacturing units in this area generating more and more employment opportunities and contributing to socio-economic upliftment of the society.
Industries are enjoying reliable, economical and cleaner fuel for powering their factories amongst other fuel applications. The use of natural gas has reduced the industries fuel bills drastically and also contributed in lower the equipment maintenance costs due to being the cleanest fuel.
NIPCO Gas in partnership with NNPC Gas Marketing Limited under the Presidential CNG initiative is also constructing CNG Stations across Nigeria. NIPCO Gas is sure that with the support of piped natural gas supplies to industries, the NGML-NIPCO Gas JV will be able to keep and maintain lower CNG prices, alleviating financial pressures on the public amid Nigeria’s economic conditions.
Additionally, the increased use of domestic gas in the industrial and automotive sectors is expected to help the Federal Government reduce fuel import bills and save on foreign exchange.
The supply of Natural Gas to Free Zone is a prestigious project and NIPCO Gas feels honored & grateful to be associated with this project; and would like to express sincere gratitude towards NNPC Limited and its subsidiary NGML for trusting and believing in the capabilities of NIPCO Gas and making NIPCO Gas as their preferred JV partner.
We especially thank the NNPC Gas Infrastructure Company for their unwavering support and guidance in expediting connectivity to this project.
We believe that deepening of domestic natural gas utilization will significantly help in overall development and economic growth of Nigeria.
