$700 million Gas Pipeline Project Set Back in Nigeria

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$700 million Gas Pipeline Project Set Back in Nigeria

Wed, 08/16/2017 - 08:40
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$700 million Gas Pipeline Project Set Back in Nigeria (Peter Hermes Furian / Shutterstock)
$700 million Gas Pipeline Project Set Back in Nigeria (Peter Hermes Furian / Shutterstock)

Seasonal rains, security threats and overall contractor incompetence has delayed the completion of the 123-km, 48 inch East-West Gas Pipeline in Nigeria. 31 July 2017 had been the start-up goal of the project.

The pipeline will bring natural gas from the resource - rich eastern Niger Delta to the western Niger Delta, where energy demand is high due to a plethora of new industrial customers and power plants.

When the pipeline is completed, power plants such as Egbin, Sapele, Geregu, Omotosho,and Olurunsogo and Ugheli, would have seamless gas supply and generate a significant expansion in electricity supply, as it is to be linked to the Escravos-Lagos pipeline.

The project will cost an estimated $700 million when finished and for the first time local companies are engaged as contractors on a project of strategic significance for the country.

Biodun Adesanya, president of the Nigerian Association of Petroleum Explorationists (NAPE) said the delay in the delivery of the projects has not removed the economic benefit of the project.

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