NNPCL to replace 5,000km pipelines in three years – Kyari

The Group Chief Executive Officer of the Nigerian National Petroleum Company, Mele Kyari, on Thursday, said the over 5,000km petroleum products pipeline network of the oil firm would be replaced in three years.

Kyari disclosed this at the 2024 edition of the Society of Petroleum Engineers Oloibiri Lecture Series and Energy Forum in Abuja, with the theme, ‘Stability in the Energy Sector: Integrated Strategies for Infrastructure, Transportation and Security.’

He said, “The cheapest way of transporting petroleum products is by pipelines and that is why our NNPC network of pipelines is connecting almost all geopolitical zones, we have 27 stations and over 5,000km of pipelines across the country.

“However, many of them as we know, are at the point that we just have to replace them, and that is what we are doing today. We have commenced a BOT (Build, Operate and Transfer) process where nearly all the pipelines will be replaced over a period of three years.

“As we do this, we are also reinforcing the ability of the current network to deliver products to our locations.”

The NNPCL boss further stated that the replacement of the pipelines was critical and would be delivered within the specified timeline.

Kyari told participants at the lecture series that the recent improvement in the security of oil assets would enable the country to meet its crude oil production target for the year, adding that Nigeria currently pumps about 1.6 million barrels of crude oil daily.

He said the oil company was working hard to supply eight billion standard cubic feet of gas into the domestic market through the deployment of various gas projects.

He listed some of the infrastructural projects being undertaken by the NNPCL to help bridge the energy access gap in Nigeria including the Obiafu/Obrikom/Oben or OB3, and Ajaokuta-Kaduna-Kano pipelines, adding that they were designed to enhance the nation’s gas supply network.

“Our laws today say NNPC must guarantee energy security for our country in any context, not just about fuel in filling stations. It is beyond this, that we can create power in our country, and we can combine the resources that we have to know the level of prosperity that can come out from it.

“This is our understanding of our role and that is why we are completely determined to see that we invest in the infrastructure that will deliver gas and increase gas supply to the domestic market to at least eight billion standard cubic feet.

“This cannot be sustained unless we are able to increase the capacity of our network. And that is why we are making efforts to complete the OB3 gas project which will release over two million standard cubic feet of gas immediately into our network,” Kyari stated.

He added, “Also, the AKK gas pipeline project has been running and we are set to meet our deadline. I wouldn’t want to give numbers and dates, but I can tell you that by the end of this year, if we have not completed the line, it would be a little thing left.”

Kyari said four floating Liquefied Natural Gas projects were being targeted this year, adding that NNPCL and its partners would take Final Investment Decisions on two of the projects in 2024.

“This means we will have the capacity to further take gas to the international market and increase it substantially,” Kyari stated.

Meanwhile, Kyari noted that members of SPE were critical in the core business of NNPCL, both in the production of crude oil, gas, and transporting it, among others.

Also speaking at the event, the Chairperson of the Society of Petroleum Engineers Nigeria Council and Head of Asset and Investments Management, NNPCL, Salahuddeen Tahir, emphasised the critical role of energy in modern society.

He said, “It’s a trigger for essential services such as transportation, heating, electricity generation, medical services, security, banking services, and communication.”

Tahir said there was a need to develop a diversified and sustainable energy transportation system as a measure for mitigating climate change and enhancing energy security.

This came as the Chief Corporate Communications Officer, of NNPCL, Olufemi Soneye, was awarded the 2024 Distinguished Spokesperson in Oil and Gas by the Nigerian Institute of Public Relations.

In a ceremony organised by the institute during its National Spokesperson Awards in Abuja, Soneye was recognised “in recognition of his work of managing the image of Africa’s largest oil and gas company.”

Soneye, who was represented at the awards by Mrs. Oluwakemi Olumuyiwa, Head, Relationship and Stakeholder Management, NNPCL, dedicated the award to Kyari, whose support and guidance had been instrumental in shaping his role as a spokesperson.

He appreciated the corporate communications team of the oil firm for their collaborative efforts and dedication to excellence.

“This award is for the whole team and it will serve as motivation to continue striving for excellence in representing NNPCL, the sector and upholding the highest standards of communication,” Soneye stated