NNPC signs contract for virtual gas pipeline system

The Nigerian National Petroleum Corporation (NNPC) has executed a contract with an undisclosed private firm to launch a virtual gas pipeline system.

Set to be facilitated through the installation of Mini-LNG plants, the project has been designed to initially supply around 84 million standard cubic feet of gas per day (Mscf/d).

Customised cryogenic tankers will be used to transport gas from production fields to areas that cannot be easily accessible through pipelines.

NNPC group managing director Dr Maikanti Baru said that the new gas supply technique will further develop Nigeria’s energy sector.

Baru further added that the existing proven gas reserve of the nation stood at approximately 202 trillion cubic feet (Tcf) up from an initial figure of 199Tcf and has a potential for up to 600Tcf in undiscovered resources.

According to Baru, Nigeria reviewed the domestic gas price to export parity and developed new standardised agreements for gas supply, increasing domestic gas supply.

The company also had developed a strategy to increase gas supply in a bid to address the unprecedented growth in gas demand.

NNPC’s strategies included completion of the short-term gas supply projects, incremental supply from Nigerian Petroleum Development Company (NPDC) Oredo, Utorogu and Odidi re-entry projects.

Upon completiion, the projects are set to deliver around 240Mscfd of gas to the domestic market by the fourth quarter of this year.

Baru added: “Our plan is to connect all the stations through pipelines to bring liquefied petroleum gas (LPG) closer to consumers.”