November 23, 2017

Total to builds a pipeline to supply gas to Alaoji power plant, Nigeria


Total has built a $900 million worth of 24-inch pipeline infrastructure covering 50km to make sure it supply gas to the Alaoji Power Station in Abia State. The pipeline infrastructure will begin from Oil Mining Lease (OML) to Imo River and finally to the 964MW capacity Alaoji Power Station.

According to the MD, Total Upstream companies in Nigeria Mrs. Elisabeth Proust, the company is optimistic in producing and supplying gas through the pipeline to other industries by 2017. She further revealed that domestic gas price currently standing at US$2.5 per million British Thermal Unit (BTU) should be increased to US$7 per million British Thermal Unit (BTU) claiming that good prices has to be ensured so that such projects will be viable.

However, the company will supply gas to Alaoji at a price of US$2.5 per million British Thermal Unit (BTU) noting that the price will not be adequate to guarantee sufficient returns on the investment.

She added that they require between US$5- US$7 per million BTU for the growth of such facilities. Total is considered to have taken up a risk in sustaining the big affiliate in Nigeria, creating more employment opportunities.

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