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Author Topic: Nigeria’s Power Sector Requires 10,000km Gas Pipelines, Says GE Boss  (Read 1354 times)

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The President and Chief Executive Officer (CEO) of General Electric (GE) Nigeria, Dr. Lazarus Angbazo, has stated that Nigeria requires 10,000 kilometres of gas pipelines to power the country’s electricity sector.

Speaking to select journalists in Lagos at the weekend, Angbazo said gas supply was probably one of the biggest challenges facing the country’s power sector, stressing that the current 1,000kilometres of pipelines supplying gas to the various electricity generating plants across the country were grossly inadequate.

He said in theory, Nigeria was awash with abundant gas with 187trillion cubic feet (TCF) of proven gas reserves, ranking eighth in the world and 600tcf of unproven gas reserves.

Angbazo, however, added that in practice, the country was a gas-poor nation as these abundant gas resources were not readily available for power generation.

“The gas was found in the process of drilling for oil. Now, to collect that gas; clean it up and transport it to the point of use takes a lot of investments. A finished product from that process is a clean gas and that is not available. So, we are both gas –rich and a gas-poor nation,” he said.

Angbazo said the gas was not available because the oil companies that own the gas did not invest, adding that they did not invest because it was not economical for them to invest in the domestic gas sector.

“It was not economical because the federal government put an artificial tariff of 25 cents per million British Thermal Unit (BTU), since the market rate for the same gas when liquefied through the Nigeria Liquefied Natural Gas (NLNG) Limited can fetch between $2 and $3. So, the incentive to actually collect, process and deliver gas for domestic use was economically not sustainable,” he said.

The GE Nigeria boss said even if the gas was available, there were only about 1,000 kilometres of delivery pipelines but what was needed to meet the country’s power need were about 10,000kilometres of pipelines.

He said apart from the inadequate pipelines to deliver gas to the consumers, the existing pipelines had also been vandalised consistently.

“So, even when you have the gas, the pipelines terminate at certain points. How do you get the gas from the terminal point to the power plant or fertilizer or methanol plant? That is a big gap,” he added.

On what GE is doing to address the gas supply challenges, Angbazo said as a technology innovative company, his company was developing a gas pipeline solution to address the challenges.

“We are not a pipeline company. We are a technology innovative company. We are coming up with a solution,” he added.


Adewale Odubiyi
Owner, Nigeria Oil & Gas Forum

Nigeria Oil & Gas Forum


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