Dangote To Award Gas Pipeline Contract In “A Matter of Months”

Dangote Industries is evaluating detailed engineering scope for the 1,100km subsea gas pipeline project from Qua Iboe in the south east of Nigeria to Lagos in the country’s southwest.

Devakumar Edwin, Group Chief Executive in charge of the project, says he expects the contract to be awarded within the next six months. “We are creating a corridor of pipelines under the sea. They will help monetise stranded gas along the route. The pipeline system will pass under the sea and will not be prone to the frequent damages that occur on others now”.

The project involves two 550km pipelines (making 1,100km) and a gas processing plant, with capacity to pump 3Billion standard cubic feet of gas per day, about 75% of the current production of the country and about thrice the domestic supply. One of its many derivables is, it will help feed the company’s Fertiliser plant currently under construction in Lekki Free Trade Zone in the east of Lagos.  If the project is not completed by the time the Fertiliser is commissioned, “we will divert the gas we are currently using at our Obajana Cement Plant (supplied by the Nigerian Gas Company NGC) to feed the Fertiliser plant and use coal for the Obajana Cement Plant”, Edwin says. About 140MMscf/d of gas is currently being supplied to Obajana, which is located in the middle of Nigeria. “The NGC has a way by which you could take swap gas here for one supplied there”.


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