News

Tinubu backs local firm to unlock 2.3bn cubic feet daily gas capacity

By Chesa Chesa

President Bola Tinubu has thrown his weight behind indigenous engineering firms, urging international oil companies operating in Nigeria to give them greater opportunities to execute major energy projects.

Tinubu said the policy was part of his administration’s Nigeria First agenda, which seeks to expand local manufacturing, create skilled jobs and retain more economic value within the country.

The President spoke at the State House, Abuja, on Thursday while receiving the Founder and Chairman of Lee Engineering Group, Chief Leemon Ikpea, following the indigenous firm’s construction of two compressor stations designed to enable the Escravos–Lagos Pipeline System (ELPS) to operate at its full capacity of 2.3 billion standard cubic feet of gas per day.

According to a statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the project is expected to strengthen gas supplies to power plants and industries along the pipeline corridor.

The compressor stations, located in Edo State, are being executed by Lee Engineering under an Engineering, Procurement and Construction (EPC) contract.

Although the ELPS II expansion increased the pipeline’s designed capacity from 1.1 billion to 2.3 billion standard cubic feet of gas per day, the compressor stations are required to raise operating pressure and enable the system to deliver gas at its full capacity.

Tinubu said Nigeria must translate its local content policy into more contracts for competent Nigerian companies, increased use of locally manufactured equipment and more employment opportunities for citizens.

He urged international oil companies to establish stronger partnerships with indigenous engineering firms that had demonstrated the technical capacity to execute complex projects.

The President also highlighted his administration’s 2024 executive orders and presidential directives on local content compliance, contracting costs and approval timelines, saying the measures were designed to attract investment, reduce delays and expand opportunities for Nigerian businesses.

Beyond meeting domestic demand, the project is expected to support increased gas supplies to neighbouring West African countries through the West African Gas Pipeline, creating opportunities for additional export earnings.

Ikpea commended Tinubu’s Nigeria First policy, noting that Nigerian companies had invested significantly in modern equipment, technology and skilled personnel and could now undertake complex engineering projects previously dominated by foreign contractors.

He disclosed that Lee Engineering’s fabrication yard in Warri, Delta State, was manufacturing some components for the compressor stations and housed advanced fabrication equipment.

Related Posts

This News Site uses cookies to improve reading experience. We assume this is OK but if not, please do opt-out. Accept Read More