NNPC launches pipeline overhaul to boost Nigeria’s energy security

The Nigerian National Petroleum Company Limited (NNPC) has launched a major rehabilitation programme to modernise its ageing pipelines and depots, aiming to bolster Nigeria’s energy infrastructure and resolve inefficiencies in petroleum distribution.

NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, said the initiative, expected to take two to three years, will ensure consistent crude oil supply to refineries, enhance product distribution and reduce reliance on trucking. According to Soneye, the project will improve energy security, reduce fuel imports, lower transportation costs and minimise road hazards caused by fuel tankers.

The programme involves replacing obsolete crude oil and product pipelines, deploying advanced security technologies to combat vandalism and upgrading storage terminals. It aligns with NNPC’s objective of achieving self-sufficiency in refined petroleum products and becoming a net exporter, a goal further supported by the ongoing refurbishment of the Port Harcourt and Warri refineries.

Given fiscal constraints, the project will be financed using a Finance, Build, Operate and Transfer (FBOT) model, which NNPC believes is cost-effective. Soneye highlighted the importance of strategic partnerships and innovative funding mechanisms to ensure the project’s success.

This initiative represents a significant step in addressing Nigeria’s energy distribution challenges, strengthening infrastructure resilience and fostering economic growth.