Pre-feasibility Study for a Gas Pipeline Expansion Project in Nigeria

Project Background

The client, an oil and gas exploration company, manages a 30-inch diameter gas pipeline spanning over 400 kilometers. This pipeline is a crucial component of the proposed Trans Nigeria Gas Pipeline Project, with the objective of transporting gas from its entry point to consumers located near major offtake points along the route, with any surplus gas intended for injection into a subsequent pipeline.

The client wanted to explore the opportunity to expand the pipeline and desired a comprehensive understanding of key project elements, including technical aspects, environmental considerations, costs, economics, and financial parameters.

Services Provided  

The study was conducted by key experts from Penspen’s Centre for Engineering Excellence (CEE), with support from Penspen’s UAE office and additional expertise from Penspen’s parent company, Sidara, to conduct the integrated study. The study comprised the following tasks:

– Gas Supply and Gas Market Analysis

– Engineering concepts for pipeline/compressor stations

– Environmental and Social Appraisal

– Project Cost Estimate

– Economic and Financial Overview

– Risk Review and Project Phased Development

In addition to considering the pipeline diameter suggested by the client, Penspen also explored a larger pipeline diameter. The study recorded significant benefits of additional gas volumes for a relatively modest increase in expenditure. The client was provided with valuable information on all available options. This approach ensured that the client had a comprehensive understanding of the potential advantages with different pipeline diameters, enabling them to make a decision that aligns with their goals and priorities for the project.

Result & Value

Leveraging Penspen’s global expertise and seamless collaboration across regions, the study and all associated project deliverables were provided to the client within a short timeframe of three months. Penspen also actively supported the client in meetings with external stakeholders and provided post-study support, assisting in defining the project’s next steps and guiding client actions. Upon successful completion of this expansion project, Nigeria will benefit from new domestic power supplies, helping to foster further economic growth in the country and beyond.