FG plans rehabilitation of 5,120km pipelines

The Federal Government, through the Nigerian National Petroleum Company Limited, has commenced a process to comprehensively rehabilitate 5,120km of pipelines transporting crude oil and other petroleum products.

These pipelines, which are crucial for the transportation of crude oil and other petroleum products, stretch across various regions of the country and are buried underground.

The NNPCL Group Chief Executive Officer, Mele Kyari, disclosed this plan at the Nigeria International Pipeline Technology and Security Conference organised by the Pipeline Association of Nigeria themed, “Pipelines – Critical Assets for National Economic Development and Environmental Sustainability.” on Thursday in Abuja.

He stated that the preliminary stage of the process is ongoing without disclosing the amount it would cost.

The event was organised to discuss solutions to improve on technological innovation, security concerns and the need for sustainable practices.

Speaking in his address, The GCEO represented by the Managing Director of the Nigeria Pipelines and Storage Company, Folorunsho Kareem, noted that pipelines are crucial to energy security and reducing carbon footprints, contributing 5 per cent of the greenhouse emission while trucks, railways and motorways contribute 27, 17 and 22 per cent respectively.

He noted that the company is responsible for moving crude and refined products across the country and currently transports products to eight pump stations nationwide to ensure the desired flow rate and pressure, 22 Product Depots Terminal and one Crude oil Terminal Escravos), Bonny Export Terminal, Eight LPG Buterization plants and three Jetties at Apapa.

According to him, the national oil firm has developed an advanced and comprehensive series of technological solutions that leverage cutting-edge tools and strategies, including the extensive use of data analytics, sophisticated sensor systems, automation processes, and artificial intelligence.

He said, “Pipelines are very critical infrastructural systems that transport essential resources, such as oil, natural gas and water, across far distances to support national economic development.

“It plays a very important role in ensuring the efficient and reliable delivery of energy and resources, and thereby driving economic growth. It also helps to contribute to environmental sustainability by reducing the carbon footprint of transportation and facilitating the distribution of renewable energy sources.”

Kareem further explained that the company is carrying out a comprehensive rehabilitation of its pipeline network, particularly in high-risk areas, to achieve energy security.

He said the rehabilitation effort is part of a larger strategy to enhance the efficiency, safety, and sustainability of Nigeria’s oil and gas infrastructure, ensuring a more reliable and secure supply of petroleum products for both domestic use and international export.

He added that the firm had adopted a low-cost, low-risk and high-utilisation method to reduce security expenses on maintaining pipelines.

He stated, “We are a global dynamic company involved in the transportation and storage of products. We have 5,120 kilometres of pipelines scattered across the whole country, and our network supplies crude oil to state-owned refineries and evacuates products for distribution across the storage depots. We have two-way pipelines A, B and C, that can’t transport products from the Warri refinery to the Kaduna refinery, and this is in support of our ongoing rehabilitation exercise in the Kaduna refinery.

“On maintenance, we identify segments for the damaged or leaked pipeline, we carry out removal of damaged sections, and replace them. Since 2016, we have put up a contract with a security-based company and signed a penalty clause in the contract.

“If there is any leakage, we penalize the contractor of one person cent. And this has been working for us. As a result of this contract, we have been able to achieve zero losses since we started the movement for both Port Harcourt and Warri refinery.

“Now, the current pipeline system, as you would all agree with me, comes with a high-security cost as well as lower utilization because our refineries are not working, but we are working to make sure that our pipeline has low-security costs, risks and high utilisation because very soon all refineries will be working.”

Continuing, the NPSC boss said the company is utilising a Horizontal Directional Drilling method to secure its infrastructure. The project which will be carried out as a Public-Private partnership will give a return on investment higher than the current security costs

He added, “The new strategy we are employing right now is to construct a high-integrity and low-risk pipeline. We are going to deploy Horizontal Directional Drilling to bury our pipeline in high-risk areas. We have such areas when you are going from Warri to Kaduna, about 500 meters. We are going to install HDD on this section of the line. Then the new thing we are doing, because we have been running these pipelines for many years. The new thing we want to do to get different results is to apply technology to monitor and manage our pipeline using fibre optic radio sequencing.

“The project is going to be financed through the public-private partnership arrangement through the Build, Operate and Transfer model. We have already commenced, and our assets have been categorised into four segments: Port Harcourt refinery and related infrastructure, Warri Refinery and related infrastructure, Kaduna refinery and related infrastructure and the Atlas. The BOT partner is working with us to ensure that all 5,120km pipelines are fully rehabilitated and ready to push crude and finished products across the country.

“The return on investment will be provided through a throughput fee to give a return on capital invested. This fee will be higher than the current security costs and losses.”