Nigerian National Petroleum Company Limited (NNPC) yesterday said it was working to ensure the deployment of high integrity crude oil and gas pipeline infrastructure nationwide that would cost less to secure.
NNPC stated that it will invest heavily, along with its partners, in technology to upgrade the existing oil and gas transportation infrastructure as well as ensure that the network met modern trends in the sector.
Speaking in Abuja yesterday at the 2024 edition of the Nigeria International Pipeline Technology and Security Conference (NIPITECS), Group Chief Executive Officer (GCEO) of NNPC, Mele Kyari, said the upgrade will involve the use of fibre optic technology, geo-tagging/sensing technology, radio frequency, among others.
The event organised by Pipelines Professionals Association of Nigeria (PLAN) had the theme, "Pipelines: Critical Assets for National Economic Development and Environmental Sustainability."
NNPC has over 5,120 kilometres of pipeline network nationwide, which is supposed to supply crude oil to the state-owned refineries and evacuate refined products for distribution across storage depots.
However, a huge portion of the pipelines have been subjected to vandalism and outright sabotage, as well as the effect of ageing. Some of the pipelines have lasted over six decades.
Represented by Managing Director of a subsidiary of NNPC, Nigerian Pipelines and Storage Company Limited (NPSC), Folorunso Kareem, the NNPC GCEO stated that the national oil company had eight pump stations, located at Abaji, Abudu, Auchi, Biu, Izom, Lokoja, Sarkin Pawa, and Zaria, to ensure desired flowrate and pressure, as well as 22 product depots/terminals and one crude oil terminal in Escravos.
Kyari stated that NPSC had implemented a programme to guarantee the reliability of the pipelines, including the repair of pipelines and use of security and maintenance contracts.
Since 2016, he said the national oil company had had an incentivised contract with a security company, which included security and maintenance services.
He added, "The contractors are also responsible to perform minor repairs to stop leakages. Contractors are penalised for leakages over one per cent. As a result, the leakage on pipelines is aligned with industry standards.
"Crude lines to Warri and Port Harcourt experience less than one per cent leakage."
However, he said the current system created significant cost due high security expenditure, and assured that a new pipeline network would solve these issues.
Kyari stated, "The new strategy is to construct high integrity, low risk pipelines as well as new engineering solutions (HDD) to bury pipelines deeply in high risk areas. Then new technology solutions for monitoring and management-fibre optic technology, geo-tagging/sensing technology, radio frequency etc."
He added that the project will be financed through private investment to construct the pipelines through Build Operate and Transfer (BOT) model, which will ensure return on investment provided through a throughput fee.
According to Kyari, "The throughput fee would be higher than the current costs of security and losses. Pipelines play a critical role in achieving national economic development and environmental sustainability.
"They serve as the backbone of a country's energy infrastructure, enabling the efficient and safe transportation of essential resources such as oil, natural gas, and refined petroleum products.
"NPSC with the largest petroleum product pipeline network in Africa is poised to contribute to the nation's energy security, industrial productivity, and overall economic growth."
Minister of State for Petroleum (Gas), Ekperikpe Ekpo, stated that for a resource-rich country like Nigeria, pipeline assets played an indispensable role in driving economic growth, facilitating energy access, and promoting industrial development.
Ekpo said, "Despite the economic potential of our plans, they remain highly vulnerable to vandalism, sabotage, and theft. The consequences are dire, leading to loss of revenue, environmental degradation, and threat to national security.
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"In response, this administration will continue to develop and deploy new strategies to ensure pipeline security remains at the highest level. This will involve adopting innovative technologies, refining security protocols, and fostering stronger cooperation amongst stakeholders to address emerging threats effectively."
In his comments, Chairman, Board of Trustees (BoT) of PLAN, Geoff Onuoha, said the organisation existed to promote professionalism, best practices and information sharing in the pipeline industry.
According to him, it will also impact positively on standards, rules, funding and regulations regarding pipelines in the country as well as make pipeline issues visible to all stakeholders, thus, ensuring safe installation and operating practices.
Others who spoke at the two-day event included Chairman, House of Representatives Committee on Petroleum Resources (Upstream), Alhassan Doguwa; Chair, Technical Committee of PLAN, Dr Vincent Onuegbu; and Group Managing Director, Oilserv, Dr. Emeka Okwuosa, who was represented.
