With over $50m Investments, NIPCO Consolidates Leadership Position in Gas Business

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NIPCO Plc has invested over $50 million in gas infrastructures over the years to consolidate its leadership position in gas business, the Managing Director of the company, Mr. Suresh Kumar, has said.

Addressing journalists after a recent media tour of the company’s facilities in Lagos, Kumar promised that the company would continue to make massive investments to take advantage of the federal government’s ‘decade of gas’ policy.

Kumar recalled that the company pioneered the use of gas for vehicular fuel in the country.

“We have spent more than $50 million on natural gas infrastructure over the years. We believe that there are lots of potential in Nigeria that can be explored for gas utilisation, and this will further boost our economy.

“By using indigenous gas, we can reduce the subsidy burden on the Federal Government. We can reduce the importation burden and that will directly or indirectly save our huge capital flight and there will be more employment opportunities for Nigerians.

“We are the pioneers. We always dream for the future. So we dreamt for natural gas utilisation in Nigeria right from 2008 and we started investing. We introduced this model to the government and say that look, Nigeria is a country that has abundant natural gas and instead of wasting subsidy on petrol, we should be looking at a blueprint of changing the petrol market to CNG market,” he explained.

He said the company currently has about 19,500 metric tonnes combined storage capacity for LPG, with 10 loading bays which can truck-out over 4,000 tonnes per day.

Kumar said the company currently has over 250 branded retail stations for white products and over 100 stations for Liquefied Petroleum Gas (LPG), while plans are in progress to build many more.

According to him, the company’s 10 world-class petroleum tanks with electronic radar gauges have a combined capacity of 85 million litres, supported by 10 loading arms and 2 buffer gantries loads over 200 trucks per day.

Also speaking to journalists after the facility tour, the Managing Director of NIPCO Gas, Mr. Nagendra Verma, revealed that over 7,000 vehicles are presently running on CNG, adding that over 350 truck fleet of NIPCO are all running on gas.

According to him, the company currently has 14 CNG filling stations in various states across Nigeria, while another six CNG stations are currently under construction.

“We have workshops which are fully efficient and fully capable to convert PMS vehicles to gas, we have the expertise and we are ready to convert more vehicles to run on gas. So, we intend to have CNG stations in almost all the states of Nigeria wherever the pipeline is available.

“Presently we are laying LNG pipeline for 80 Kilometre pipeline from Shagamu interchange to Ibadan. The pipeline work is going on. We expect to commission first phase by the end of December 2023. And the entire pipeline is expected to be completed by next year,” he said

Verma said the company is also developing gas pipeline infrastructure in Lekki Free Trade Zone in Lagos, which is currently nearing completion.

He said the company is currently constructing a propane tank of 500mt capacity, the biggest in Nigeria, which would be completed in the next three months.

Verma said the construction of the tank is in fulfillment of the federal government requirements of mixing specific quantities of propane with butane for use as domestic gas.