FG to Complete $700m OB3 Gas Pipeline Project in March after Eight Years

The Federal Government made a significant announcement on Tuesday, revealing that the long-awaited $700 million Obiafu/Obrikom/Oben gas pipeline, also known as OB3, is set to be completed by March 2024. This project, which commenced in 2016, marks a crucial development in Nigeria’s energy infrastructure.

The disclosure came during the ongoing 7th Nigeria International Energy Summit in Abuja, where President Bola Tinubu addressed various energy-related matters, including the recent removal of petrol subsidy, despite acknowledging its challenges.

Offering insights into Nigeria’s gas sector, Minister of State for Petroleum Resources, Gas, Ekperikpe Ekpo, hailed the OB3 gas pipeline as a monumental achievement in the country’s quest for a gas-driven economy. He emphasized its significance as one of the largest gas transmission systems not only in Nigeria but also across Africa.

“In our journey towards a gas-focused economy, the Ajaokuta-Kaduna-Kano pipeline is another milestone. I am pleased to report significant progress in its construction, ensuring its timely completion and commissioning,” Ekpo remarked.

“The OB3 pipeline, a vital piece of gas infrastructure supplying feedstock to the AKK pipeline, stands as a testament to our commitment. It will be completed by March 2024, according to contractor estimates, delivering 2 billion standard cubic feet of gas per day through its 42″ 127km pipeline,” the minister added.

Ekpo highlighted that upon completion, the OB3 pipeline would feed the AKK pipeline with gas from the Obiafu, Obrikom, and Oben fields, commending the Nigerian National Petroleum Corporation Limited (NNPCL) for its dedication to ensuring the project’s timely conclusion.

The OB3 gas pipeline project, also known as the East-West Pipeline, kicked off in 2016, connecting the Obiafu-Obrikom gas plant in Rivers State to Oben in Edo State, with a capacity to transport two billion standard cubic feet of gas per day.

Subsidy Removal

Addressing the subsidy removal issue on behalf of President Tinubu, Minister of Information and National Orientation, Mohammed Idris, emphasized that petroleum subsidy had strained Nigeria’s economic resources over the years, hindering investment in critical areas of energy security.

Tinubu’s statement, read by the minister, emphasized the decision’s transparency and its redirection of funds towards energy and social infrastructure development. He assured that social intervention programs would mitigate the subsidy removal’s short-term effects on vulnerable populations.

While acknowledging the decision’s immediate impact, Tinubu urged stakeholders to engage in constructive dialogue for the nation’s long-term energy security and economic prosperity.

Tinubu had announced the removal of fuel subsidy on May 29, 2023, during his inaugural speech, which was swiftly implemented by NNPCL, Nigeria’s sole petrol importer, the following day.

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