KUPOLOKUN INDUSTRY WATCH: Dangote Increases Nigerian Gas Supply

DEJ Dangote Gas

Dangote aims to increase the supply of gas to Nigeria by building pipelines with the support of the Carlyle Group LP and Blackstone Group LP which are two of the largest private-equity firms in the world. The pipelines will increase the amount of gas available in Nigeria to 4 billion standard cubic feet per day from 1 billion. The Dangote group intends to invest between $2.2 billion to $2.5 billion in two sub-sea 550-kilometer (341-mile) pipelines running from the Niger delta region to Lagos (nigerianoilgas.com).

While Nigeria has gas reserves of about 180 trillion cubic feet (more than any other African country), most of what is produced gets flared or exported because of a lack of infrastructure to transport it to local companies and households.

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Creating pipelines will increase electricity generation and will counter the country’s long-time problem of power cuts according to Dangote. Dangote further disclosed that the laying of the pipelines is expected to begin before the end of the year, adding that the first pipeline should be ready by the middle of 2017 (petroleumindustryreview.com).

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