The Nigerian National Petroleum Company Limited announced on Thursday that it is working to deploy high-integrity crude oil and gas pipeline infrastructure across the country, aiming to reduce security costs.
NNPC stated that in partnership with its collaborators, the company plans to heavily invest in technology to upgrade existing oil and gas transportation infrastructure, ensuring it aligns with modern industry standards.
Speaking at the 2024 Nigeria International Pipeline Technology and Security Conference in Abuja, NNPC’s Group Chief Executive Officer, Mele Kyari, revealed that the upgrade will incorporate technologies such as fibre optics, geo-tagging/sensing, and radio frequency.
The event, organized by the Pipelines Professionals Association of Nigeria (PLAN), was themed “Pipelines: Critical Assets for National Economic Development and Environmental Sustainability.”
NNPC operates over 5,120 kilometers of pipeline network nationwide, designed to supply crude oil to state-owned refineries and transport refined products for distribution across storage depots.
However, a significant portion of NNPC’s pipelines has been damaged by vandalism, sabotage, and the effects of aging, with some pipelines being over six decades old.
Represented by the Managing Director of NNPC’s subsidiary Nigerian Pipelines and Storage Company Limited, Folorunso Kareem, the NNPC GCEO highlighted that the company operates eight pump stations—located in Abaji, Abudu, Auchi, Biu, Izom, Lokoja, Sarkin Pawa, and Zaria—to maintain the desired flow rate and pressure.
Additionally, NNPC oversees 22 product depots/terminals and one crude oil terminal in Escravos.
Kyari stated that NPSC had launched a program to ensure the reliability of the pipelines, which includes pipeline repairs and the use of security and maintenance contracts.
Since 2016, he mentioned, NNPC has had an incentivized contract with a security company that provides both security and maintenance services.
“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,” he added.
However, Kyari noted that the current system incurs significant costs due to high security expenditures. He assured that the development of a new pipeline network would address these issues.
He 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 under the Build, Operate, and Transfer (BOT) model, ensuring a return on investment through a throughput fee.
“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,” Kyari said.
Minister of State for Petroleum (Gas), Ekperikpe
Ekpo stated that for a resource-rich country like Nigeria, pipeline assets are crucial in driving economic growth, ensuring 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.
“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 remarks, the Chairman, Board of Trustees (BoT) of PLAN, Geoff Onuoha stated that the organization’s purpose is to promote professionalism, best practices, and information sharing within the pipeline industry.
He noted that the organization would also enhance standards, regulations, funding, and rules concerning pipelines in the country, making pipeline issues more visible to all stakeholders and ensuring safe installation and operational practices.
