NNPC postpones delivery date of $700 million gas pipeline to August

Obiafu-Obrikom-Oben (OB3) Gas Pipeline Project to Be Completed by AugustObiafu-Obrikom-Oben (OB3) Gas Pipeline Project to Be Completed by August The completion date of the $700 million Obiafu-Obrikom-Oben (OB3) gas pipeline project has been revised to August, according to the Nigerian National Petroleum Company Limited (NNPC). This marks an extension from the previous March 2024 deadline. 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. It is considered a strategic project for Nigeria’s gas supply. The project faced challenges in completing the River Niger Crossing operation, which involved laying a 48-inch pipe under the riverbed. However, with the application of microtunneling technology, progress has been made, and approximately 860 m of the 1,800 m crossing has been completed to date. The NNPC Group Chief Executive Officer, Mele Kyari, visited the site and expressed confidence that the project will be completed by mid-August. He highlighted the significance of the project for Nigeria’s gas supply, stating that it will bring approximately 2.2 billion standard cubic feet of gas into the network. The Minister of State for Petroleum Resources, Ekperikpe Ekpo, commended the pace of work at the River Niger Crossing and expressed optimism that it would be completed by July or August. Special Adviser to the President on Energy, Olu Verheijen, emphasized the project’s importance for the country’s energy needs. The Managing Director of NNPC Gas Infrastructure Company, Seyi Omotowa, presented details of the project’s progress and confirmed that the River Niger Crossing operation is on track to be completed within the revised schedule. The OB3 gas pipeline is estimated to have cost $700 million and has been under construction since 2016. Once completed, it is expected to transport over two billion standard cubic feet of gas per day, enhancing Nigeria’s gas supply and contributing to its energy revolution.

The delivery date for the completion of the $700 million Obiafu-Obrikom-Oben gas pipeline project, popularly known as OB3, has been pushed back from March 2024 to August after the Nigerian National Petroleum Company Limited announced its readiness to complete the facility.

On February 28, 2024, The PONS reported that the federal government had stated that the project would be completed in March this year, a project that started in 2016.

This was announced in February through the Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, at the 7th Nigeria International Energy Summit in Abuja, where the minister described the OB3 gas pipeline as one of the largest gas transmission systems in both Nigeria and Africa. .

“I am very excited to announce that, according to contractor estimates, the OB3 pipeline will be completed by March 2024 and the 42” 127 km pipeline will deliver 2BCF (two billion standard cubic feet) per day” , Ekpo had stated.

But in a statement issued on Sunday in Abuja by the spokesperson of NNPC, Olufemi Soneye, the oil company said the project would be completed by August.

The Group Chief Executive Officer, NNPC, Mele Kyari, confirmed this on Saturday during an inspection tour of the OB3 River Niger Crossing pipeline in Aboh, Delta State, according to the statement.

By design, the OB3 gas pipeline is the interconnector connecting the eastern gas pipeline network with the Escravos-Lagos pipeline system in the west and the Ajaokuta-Kaduna-Kano pipeline in the north.

The River Niger Crossing operation has been the major obstacle to the completion of the strategic OB3 gas pipeline for over three years, NNPC said.

This, according to the report, was due to the failure of the various technologies deployed to realize the construction of the 48-inch pipe under the riverbed between Ndoni in Rivers State and Aboh in Delta State.

However, it noted that with the application of microtunneling/direct pipe installation technology, the new contractors, Messrs. HDD Thailand/Enikkom and Tunneling Services Group (TSG), made progress, reaching approximately 860 m of the 1,800 m. far.

After the inspection trip, Kyari expressed his delight at the breakthrough, which signaled the imminent completion of the project.

He was quoted as saying: “This is a major project of monumental value for our country. What this means is that this is the only way we can achieve the gas revolution. I am very happy and confident that we will complete this project by mid-August. I have been assured of this by the project team.”

On the significance of the project, he said: “Once completed, we will see approximately 2.2 billion standard cubic feet of gas coming into our network. We believe this will give our country a breather from demand. I’m sure we can catch up with that kind of demand in the next year and a half. We are happy that this will provide us with the platform to unleash the gas revolution in our country.”

During the tour, Ekpo also spoke about the project and expressed satisfaction with the pace of work at the OB3 River Niger Crossing operation.

“I was here last year and saw what was going on. It was promised that it would be ready by December last year. I accepted it with doubt. But today, as far as I can see, I am confident that it will be completed by July or August and will be built on behalf of the President,” he said.

The Special Adviser to the President on Energy, Olu Verheijen, said she looked forward to the completion of the project after the technical team was assured that the right technology had been identified to solve the complex challenges of the River Niger Crossing.

“As the minister and other speakers said, we look forward to this project bringing prosperity to Nigerians in the form of electricity and other areas,” Verheijen said.

The Managing Director of Tunnel Service Group, one of the contractors on the project, Ingo Justen, who was on site to oversee the project at the request of the NNPC boss, expressed confidence that the current technology employed at the implementation of the project would lead to a speedy conclusion.

In a presentation, the Managing Director of NNPC Gas Infrastructure Company, Seyi Omotowa, disclosed that given the speed at which the new technology is being deployed, the River Niger Crossing operation, the only remaining aspect of the OB3 gas pipeline project, would be completed. realized on schedule.

The estimated cost of constructing the OB3 gas pipeline is $700 million. The project started sometime in 2016 and is also known as the East-West Pipeline.

It connects the Obiafu-Obrikom Gas Plant near Omuku, Rivers State, to Oben, Edo State, and is expected to transport over two billion standard cubic feet of gas per day.