Nigerian $700m Gas Pipeline Reschedules the Start of Operations to August
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The Nigerian National Petroleum Company (NNPC) announced a delay in completing the $700 million Obiafu-Obrikom-Oben (OB3) gas pipeline project.
The project, initially targeted for completion in March 2024, is now expected to be finished by August.
As reported by The Street Journal on Monday, June 24, 2024, NNPC spokesperson Olufemi Soneye said Group Chief Executive Officer Mele Kyari confirmed the new timeline during a recent inspection tour of the project's River Niger crossing operation.
The OB3 gas pipeline, designed to connect the Eastern gas pipeline network to western and northern pipelines, has faced delays for over three years due to challenges in constructing the underwater section across the Niger River.
However, Soneye said adopting new Micro-Tunnelling/Direct Pipe Installation technology has yielded significant progress. The new contractors, Messrs HDD Thailand/Enikkom and Tunnelling Services Group (TSG) have reportedly completed nearly half of the underwater construction.
Kyari expressed optimism about the project's imminent completion, highlighting its importance for boosting Nigeria's gas supplies.
"This is a major project of monumental value to our country," Kyari said. "Once completed, we will see about 2.2 billion standard cubic feet of gas coming into our network."
Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo also expressed satisfaction with the recent progress and projected completion date by July or August.
"I am highly elated to announce that going by the contractor estimates, the OB3 pipeline will be completed by March 2024, and the 42" 127km pipeline will supply 2BCF (two billion standard cubic feet) per day," Ekpo had stated.
The project is expected to contribute to increased electricity generation and broader economic benefits for Nigeria.