NNPC Subsidiary Acquires Equities In Gas Processing Companies

Nigerian Gas Company (NGC), a gas transportation subsidiary of the Nigerian National Petroleum Corporation (NNPC), is diversifying  into gas processing services.

This was disclosed by the chairman of the company’s Board of Directors and NNPC Chief Operating Officer (COO), Upstream, Roland Ewubare, at the 24th Annual General Meeting (AGM) of the Company which held Thursday at the NNPC Towers, Abuja.

According to the statement by the corporation’s spokesperson Samson Makoji the move by the NGC is to boost the federal government’s Economic Recovery and Growth Plan.

In his address at the AGM,  Ewubare explained that the company, in a bid to shore up its revenue base, had acquired equity in a number of gas processing concerns which include the Assa North-Ohaji South (ANOH) Gas Processing Company (AGPC), Makaraba Gas Processing Project and the Sapele Gas Compression Project.

On the company’s financial performance for 2018, he stated “The profit after tax for the year ended 31st December 2018, increased from N6.11bn in 2017 to N13.29bn representing an increase of 117%”, he declared.

The increase in the company’s revenue and profit was attributed to an increase in the volume of gas transported, cost reduction initiatives, effective pipeline operations and maintenance, and cordial relations with host communities.

On his own part Managing Director of NGC, Salihu Jamari, said the improvements recorded in the company’s performance were a testimony to the commitment by the management to deliver value to shareholders and stakeholders.

He expressed optimism that the completion of gas infrastructure projects such as Phase 2 of the Escravos-Lagos Pipeline System (ELPS 2C), Obiafu- Obrikom-Oben (OB3) Pipelines and the Ajaokuta-Kaduna-Kano (AKK) Pipeline would further boost the company’s profitability.