NNPC Asks Subsidiary to Build More Downstream Pipelines With Private Partners


Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) has tasked one of its downstream subsidiary companies, the Nigerian Pipeline Storage Company (NPSC) to build new pipelines to transport petroleum products across the country through new partnerships with private investors.

A statement from the corporation on Wednesday in Abuja, said its Group Managing Director, Dr. Maikanti Baru, gave this charge to the new board of NPSC, when he inaugurated it.

The statement was signed by NNPC’s Group General Manager, Mr. Ndu Ughamadu. In it, Baru said he wanted the subsidiary to partner with the private sector to build more pipelines parallel what NNPC has. He added that such partnership would enhance NPSC’s profitability.
“Your work also is to look at refurbishing these pipelines and storage along a Public Private Partnership (PPP) arrangement by getting willing private companies to invest in these pipelines. NNPC management is very much disposed to supporting your efforts in this regard,” said Baru.

He further urged the company to double its pipeline network in the next 10 years, stressing that such a target was necessary.
Baru, according to the statement, described pipelines as arteries of the nation’s oil and gas industry, adding that part of the reform process embarked upon by the corporation under his watch was to birth an NPSC that has a clear focus which sees pipeline storage and distribution as real business.

“I have a passion for this company and I believe this firm will be a leader in that segment of our operations. That is why we focused our energy on refurbishing, repairing and re-streaming of our storage facilities and pipelines over the last few months,” he noted.
He charged them to also integrate, through their pipelines resources, the various butanisation depots which are used as reception points for Liquefied Petroleum Gas (LPG).

“We have a lot of LPG that is being exported. This could be utilised domestically in line with our vision of providing alternative energy sources for domestic and industrial use nationwide,” Baru, added.

Baru tasked the NPSC management to engage the various host state governments towards the restoration of the Right of Way (PRoW) of pipelines to ensure the safety of the citizens and products.

He added that most of the state governments were willing to support the corporation in preventing infringements on its pipelines RoW.

The corporation’s management, he stated was ready to engage security agencies against any act of economic sabotage towards the pipelines.

According to the statement, the Chairman of the NPSC board and Chief Operating Officer (COO) Corporate Services of NNPC, Mr. Isa Inuwa, pledged the readiness of the board to support the NPSC management towards achieving its set targets.

“It is our vision to transit NPSC to a market-phasing, competitive and profit-making organisation. We are committed as a Board to deliver on this mandate,” Inuwa stated.

The statement also quoted the Managing Director of NPSC, Mr. Luke Anele, to have thanked the NNPC management, and said that although the task before his team was huge, it would nonetheless leave up to expectations.

Aside Mr. Isa Inuwa, as the board chairman, other members are COO, Downstream of NNPC, Mr. Henry Ikem-Obi, Anele, Mr. Umar Ajiya, Mr. Ahmadu Sambo, Mr. Abdullahi Gunda, Mr. Ahmed Danladi, Mrs. Betty Ugonna, and Mr. Victor Omoluabi as secretary of the board.