The Nigerian National Petroleum Company Limited (NNPCL) has postponed the delivery date for the $700 million Obiafu-Obrikom-Oben gas pipeline project (OB3) from March 2024 to August.
This update was disclosed in a press release by the company’s Chief Corporate Communications Officer, Olufemi Soneye, over the weekend.
According to the statement, Ekperikpe Ekpo, the Minister for Petroleum Resources for Gas, emphasized the importance of the project during an inspection tour of the OB3 pipeline River Niger Crossing operation at Aboh, Delta State, on Saturday. He stated that the project would now be completed and commissioned no later than August.
“I was here last year and I saw the work that was going on. There was a promise that it would be completed by December last year. I took it with a doubt. But today, from what I can see, I am confident that by July or August, it will be completed and it will be commissioned by the President,” the minister stated.
The adjustment in the delivery date by the NNPCL contrasts with Ekpo’s statement on February 28, 2024, at the 7th Nigeria International Energy Summit in Abuja. During the summit, Ekpo had indicated that the project would be finalized by March of the same year.
It’s worth noting that the project was initiated in 2016.
“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.
Regarding the project’s importance, he remarked, “Once completed, we will see about 2.2 billion standard cubic feet of gas coming into our network. We believe that this will give our country a breathing space of demand, I am sure we can catch up with that kind of demand in the next one and a half years. We are happy that this will give us the platform to unleash the gas revolution in our country.”
The NNPCL highlighted that the River Niger Crossing operation has posed a significant challenge to the completion of the strategic OB3 Gas Pipeline for over three years. This was due to the failure of various technologies deployed to construct the 48-inch pipe under the river bed between Ndoni in Rivers State and Aboh in Delta State.
However, with the adoption of Micro-Tunnelling/Direct Pipe Installation technology, the NNPCL stated that the new contractors, Messrs HDD Thailand/Enikkom and Tunnelling Services Group (TSG), have made progress, achieving approximately 860 meters out of the total 1,800 meters so far.
Earlier, during his address, Group Chief Executive Officer of NNPC Ltd, Mele Kyari, assured that the company was committed to delivering the project. He emphasized that this project is a significant step towards enhancing nationwide gas supply to drive industrialization and economic growth.
Following the inspection tour, Kyari expressed satisfaction with the progress made, indicating that the breakthrough signals the imminent completion of the project.
“This is a major project of monumental value to our country. What this means is that this is the only way we can deliver the gas revolution. I am very happy and convinced that, latest by the middle of August, we will complete this project. I have been assured of that by the project team”, Kyari stated.
By design, the OB3 Gas pipeline is the inter-connector which links the Eastern gas pipeline network to the Escravos-Lagos Pipeline System (ELPS) in the West, and the Ajaokuta-Kaduna-Kano (AKK) Pipeline in the North.
On her part, the Special Adviser to the President on Energy, Olu Verheijen, said she was looking forward to the completion of the project having been assured by the technical team that the right technology has been found to resolve the complex challenges of the River Niger Crossing.
“As the Minister and other speakers have said, we are looking forward to having this project deliver prosperity to Nigerians in the form of electricity and other areas”, Verheijen said.
Ingo Justen, the Managing Director of Tunnel Service Group (TSG), one of the project contractors, who is personally overseeing the project at the request of the Group Chief Executive Officer (GCEO), expressed confidence in the current technology being utilized for the project, believing it will expedite its completion.
During a presentation, Engr. Seyi Omotowa, the Managing Director of NNPC Gas Infrastructure Company (NGIC), revealed that with the progress made using the new technology, the River Niger Crossing operation, the final aspect of the OB3 Gas Pipeline Project, is expected to be completed as scheduled.