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Nigerian Gas Company Splits into Two

By McJohn Adjoto

The Nigerian Gas Company (NGC) has been split into two, in order to take advantage of the emerging gas market.
The two successor companies, both subsidiaries of the state hydrocarbon company NNPC, are known as Nigerian Gas Processing and Transmission Company (NGPTC) and Nigerian Gas Marketing Company (NGMC).

The old NGC operated over 2,000km of gas pipelines all over the country and was responsible for (1), the ongoing looping (doubling of capacity) of the Escravos Lagos Pipeline System, (2) superintending the construction of the Obiafu-Obrikom-Oben (OB3) gas pipeline, as well as (3) work on investment decision regarding the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, for which bids for Build, Operate and Transfer (BOT) are currently being evaluated.

The NGPTC will be responsible, going forward, for these constructions, while the NGMC will be responsible for marketing the gas molecules.

NNPC sources admit that the old NGC was not into gas processing and the new NGPTC does not currently process gas, despite its nomenclature, but it is hoping to get involved in the Central Processing Facilities earmarked in the Gas Master Plan.
This is problematic, because the Ministry of Petroleum Resources is planning to do away with the planned Central Processing Facilities in the Gas Master Plan (see Nigerian Government To tweak with Gas Master Plan).

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2 comments

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