Yemisi Izuora
The Nigerian National Petroleum Company Limited (NNPCL) has said that a major rehabilitation of its pipelines and depots to bolster the country’s energy infrastructure is now being conducted.
The Company’s Chief Corporate Communications Officer, Olufemi Soneye, said
that the project, expected to take two to three years, aims to resolve long-standing issues in petroleum distribution.
Upon completion, the rehabilitation is projected to ensure consistent crude oil supply to refineries, streamline product distribution via pipelines, and reduce dependence on trucking. Additionally, it will enhance energy security, decrease fuel imports, lower transportation costs, and mitigate road hazards caused by fuel tankers, Soneye said.
“We can assure Nigerians that NNPC’s pipeline and depot rehabilitation project is… set to resolve longstanding challenges in petroleum supply and strengthen the country’s energy infrastructure for the long term,” Soneye stated, emphasizing a structured financial model, strategic partnerships, and committed execution.
While acknowledging limited financial resources as a challenge to simultaneously executing refinery and pipeline rehabilitation projects, Soneye said the company is “exploring creative and innovative approaches to ensure a cost-effective funding model to proceed with the pipeline and depot rehabilitation.”
NNPC has designed a comprehensive rehabilitation plan for pipelines and depots and will use a “Finance, Build, Operate and Transfer (FBOT)” financial model, he said.
The project will include constructing new crude oil and product pipelines to replace outdated ones, deploying advanced technology to enhance pipeline security and prevent vandalism, and rehabilitating and modernizing storage terminals.
Soneye said NNPC is working to transform Nigeria into a self-sufficient producer and net exporter of refined petroleum products. He cited the renewed operations of the Port Harcourt and Warri refineries following rehabilitation as a key step.