NNPC to Replace Aging 5,000-km Pipeline Network in Three Years
The Nigerian National Petroleum Corporation (NNPC) will replace its entire 5,000-kilometer petroleum products pipeline network within three years to ensure the reliability of its supply network.
As reported by the Independent on Tuesday, April 2, NNPC’s Group Chief Executive Officer, Mele Kyari, made the announcement on Thursday, March 27. This was during a speech at the 2024 Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum focusing on "Stability in the Energy Sector: Integrated Strategies for Infrastructure, Transportation and Security."
"Pipelines are the most cost-effective way to transport petroleum products," Kyari said. "That's why our NNPC network connects nearly all geopolitical zones, with 27 stations and over 5,000 kilometers of pipelines across the country. However, many of them are nearing the end of their useful life and need replacing."
To expedite the project, the NNPC will utilize a Build, Operate, and Transfer (BOT) model, ensuring completion by 2027. While replacements are underway, the NNPC will focus on maintaining the current network's functionality with the project expected to be delivered withing set timeframe.
In his address, Kyari also expressed optimism about meeting Nigeria's 2024 crude oil production target due to recent improvements in oil asset security. The country currently produces around 1.6 million barrels daily.
Additionally, Kyari highlighted the NNPC's efforts to increase domestic gas supply through various gas projects aiming to deliver eight billion standard cubic feet of gas daily to the domestic market.
Kyari listed the Obiafu/Obrikom/Oben (OB3) and Ajaokuta-Kaduna-Kano pipelines as key infrastructure projects undertaken by the NNPC to bridge Nigeria's energy access gap. These pipelines are designed to strengthen the nation's gas supply network.