The NCDMB built the gas hub on a 10.6 hectare of land which was purchased in 2013 for the establishment of a pipe mill. The NCDMB said discussions to launch the pipe mill were not successful, leading the agency to utilize it for a different purpose.
The Minister said the launch of the gas hub would help Nigeria diversify its economic productivity and develop the country’s gas infrastructure value chain through the Federal Government’s declaration of 2020 as a year of gas.
“The location of this land is close to the Gbarain Gas Plant that produces more than one billion standard cubic feet per day of gas; that provides opportunities to leverage on the proximity to activate value-adding initiatives and lead to industrialization and multiple economic activities,” Mr Sylva said.
He added that LPG penetration nationwide would help the country reach its supply for the LPG value chain.
The plant would have a production capacity of 400,000 to 1 million LPG composite cylinders per annum and in turn, make composite LPG cylinders accessible and affordable to Nigerians as well as create employment opportunities.
The NCDMB announced that it developed a 10-year Strategic roadmap in 2017, and began implementation in 2018 with the aim of reaching 70% Nigerian Content level by the year 2027.
The Executive Secretary, NCDMB, Engr. Simbi Kesiye said, “Technical Capability Development is one of the pillars of our Strategic Roadmap meant to facilitate the building of manufacturing facilities and capabilities to support in-country manufacturing and assembly of equipment and input materials required for exploration and production activities.’’
Wabote further explained that the strategic roadmap provided the leverage to use the Polaku land for gas related activities and partnership with Rungas Limited to setup LPG Cylinder Manufacturing plant. Shell Nigeria set up the Pressure Reduction and Metering Station and Total Support Energy Limited provided the CNG and LNG mother-stations.
He added that with the new direction on gas, the NCDMB negotiated partnerships with three investors and 5 hectares of land have already been procured for further development.
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