KEY POINTS
• NIPCO Group says it has invested approximately $2 billion in Nigeria’s oil and gas sector.
• Investments cover pipelines, CNG, LPG, retail outlets, logistics and distribution infrastructure.
• Company operates about 700 PMS, AGO and LPG retail outlets nationwide.
• NIPCO is developing gas pipelines linking Sagamu, Ibadan and other industrial areas.
MAIN STORY
NIPCO Group says its investments in Nigeria’s oil and gas sector have reached approximately $2 billion, covering infrastructure across the downstream and gas segments.
The Managing Director of NIPCO, Nagendra Verma, disclosed this on Thursday while briefing journalists on the company’s developments in Nigeria’s oil and gas industry.
Verma said the group’s investments span pipeline infrastructure, compressed natural gas facilities, fuel retail outlets and infrastructure for Automotive Gas Oil and Premium Motor Spirit.
The investments also cover LPG and propane facilities, logistics, distribution networks and other energy related projects, according to the managing director.
NIPCO currently operates about 700 PMS, AGO and LPG retail outlets across Nigeria, strengthening its presence in the downstream market.
Verma said the company had also obtained Gas Distribution Licences under the Petroleum Industry Act for four gas distribution zones, providing the regulatory basis for further expansion of its gas business.
He said the company was focused on developing infrastructure that would enable greater use of Nigeria’s natural gas resources and expand access to alternative fuels.
NIPCO has also invested in LPG storage and distribution infrastructure and supported initiatives aimed at reducing dependence on PMS and encouraging the use of alternative fuels.
Verma said more than 10,000 vehicles in Benin City were estimated to be operating on CNG, describing the development as part of NIPCO’s contribution to the growth of Nigeria’s CNG market.
The company has also invested in natural gas pipeline infrastructure to improve connectivity and support the energy requirements of industrial and commercial users.
Among its current projects is an 18 inch, 80 kilometre gas pipeline from Sagamu to Ibadan in south western Nigeria.
Verma said work was also progressing on the Sagamu to Abeokuta gas pipeline, which is expected to improve the availability and accessibility of natural gas for industrial and commercial users.
NIPCO is also developing gas pipeline infrastructure in the Lekki Free Trade Zone in Lagos State to improve access to natural gas for businesses operating in the area.
The company said it had made progress in developing gas infrastructure and commercial opportunities across the four Gas Distribution Areas covered by its licences.
Group Executive Director of NIPCO, Abdulkadir Aminu, said the investments were aligned with the government’s objective of increasing indigenous gas utilisation.
He said the projects would also expand access to reliable and affordable gas for consumers and businesses.
THE ISSUES
- NIPCO’s reported $2 billion investment covers several parts of Nigeria’s energy infrastructure, including pipelines, CNG, LPG, retail, logistics and distribution.
- Gas infrastructure is a major part of the company’s expansion, with projects linking gas supply to industrial and commercial users in parts of south western Nigeria.
- The company’s four Gas Distribution Licences provide a regulatory platform for expanding its gas infrastructure and commercial activities under the Petroleum Industry Act.
- NIPCO’s retail network gives it a significant downstream presence, with about 700 PMS, AGO and LPG outlets currently operating across Nigeria.
- The company is also positioning CNG and LPG as part of efforts to expand alternative fuel use, with NIPCO linking its investments to increased gas utilisation and energy access.
WHAT’S BEING SAID
“Over the years, the group has invested approximately two billion dollars in Nigeria’s oil and gas sector.”
Nagendra Verma, Managing Director, NIPCO
“Today, more than 10,000 vehicles in Benin City are estimated to operate on CNG.”
Nagendra Verma, Managing Director, NIPCO
“Through these investments, NIPCO continues to support Nigeria’s energy transition, promote CNG and LPG adoption, strengthen energy access and contribute to economic growth.”
Abdulkadir Aminu, Group Executive Director, NIPCO
WHAT’S NEXT
NIPCO is continuing work on its gas infrastructure projects, including the Sagamu to Ibadan pipeline, the Sagamu to Abeokuta pipeline and gas infrastructure in the Lekki Free Trade Zone.
The company also plans to expand its activities across the four licensed Gas Distribution Areas.
BOTTOM LINE
NIPCO says it has invested about $2 billion across Nigeria’s oil and gas sector, with gas infrastructure forming a growing part of its expansion. Its current projects include pipelines and distribution infrastructure intended to increase access to natural gas for industrial and commercial users.
