NNPC shifts $700m gas pipeline delivery date to August

the $700 million Obiafu-Obrikom-Oben (OB3) gas pipeline project from March 2024 to August 2024. The NNPC announced its commitment to finalizing the project, which has been under construction since 2016.

Project Background

On February 28, 2024, The PUNCH reported that the Federal Government had anticipated the project’s completion by March 2024. This announcement was made by the Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, during the 7th Nigeria International Energy Summit in Abuja. Ekpo described the OB3 gas pipeline as one of the largest gas transmission systems in Nigeria and Africa, highlighting its capacity to transport two billion standard cubic feet (BCF) of gas per day.

Updated Completion Timeline

However, in a recent statement from NNPC’s spokesperson, Olufemi Soneye, it was revealed that the completion date has been moved to August 2024. Group CEO of NNPC, Mele Kyari, confirmed this update during an inspection tour of the OB3 pipeline’s River Niger Crossing operation in Aboh, Delta State.

Project Significance and Challenges

The OB3 gas pipeline is designed to interconnect the Eastern gas pipeline network with the Escravos-Lagos Pipeline System in the West and the Ajaokuta-Kaduna-Kano pipeline in the North. The major obstacle to the project’s completion has been the River Niger Crossing, where various technologies failed to construct the 48-inch pipe under the riverbed between Ndoni in Rivers State and Aboh in Delta State.

Technological Advancements

The NNPC has adopted Micro-Tunnelling/Direct Pipe Installation technology, with contractors HDD Thailand/Enikkom and Tunnelling Services Group (TSG) achieving significant progress. About 860 meters of the 1,800-meter section has been completed so far.

Leadership Statements

After the inspection tour, Kyari expressed his satisfaction with the progress, stating, “This is a major project of monumental value to our country. I am very happy and convinced that, by the middle of August, we will complete this project.” He emphasized the project’s significance in delivering a gas revolution in Nigeria.

Minister Ekpo, also present during the tour, echoed Kyari’s optimism. “From what I can see, I am confident that by July or August, it will be completed and commissioned by the President,” he said.

Future Prospects

Special Adviser to the President on Energy, Olu Verheijen, expressed anticipation for the project’s completion, highlighting its potential to boost electricity and other sectors in Nigeria. The Managing Director of Tunnel Service Group, Ingo Justen, supervising the project, assured that the current technology would ensure timely completion. NNPC Gas Infrastructure Company’s Managing Director, Seyi Omotowa, confirmed that the River Niger Crossing operation, the final segment of the OB3 project, is on schedule.

Conclusion

The OB3 gas pipeline, estimated to cost $700 million, aims to transport over two billion standard cubic feet of gas per day from the Obiafu-Obrikom gas plant near Omuku, Rivers State, to Oben, Edo State. The project, also known as the East-West Pipeline, is a crucial component of Nigeria’s energy infrastructure.

NNPC shifts $700m gas pipeline delivery date to August