Dangote laying $2.5b gas pipeline in partnership with Private Equity firms

By Post Nigeria April 28, 2015 14:56

Dangote laying $2.5b gas pipeline in partnership with Private Equity firms

President of the Dangote Group of Companies Aliko Dangote has revealed plans to quadruple the supply of gas in Nigeria by building pipelines in affiliation with the world’s two biggest private-equity firms, Carlyle Group LP and Blackstone Group LP.

Dangote will be investing $2.2 billion to $2.5 billion in two sub-sea 550-kilometer, 341-mile, pipelines running from Nigeria’s oil and gas-producing Niger delta region to Lagos.

The 58 year old currently rated as Africa’s richest man, said in an interview recently that the pipes will increase the amount of available gas in Africa’s biggest economy to 4 billion standard cubic feet per day from 1 billion.

Despite the fact that Nigeria has gas reserves of about 180 trillion cubic feet which is more than any other African country, most of what is produced is flared or exported due to developing infrastructure thus hampering gas transportation.

Dangote has explained that boosting domestic supply will not only improve the economy it will also help increase electricity generation by about 70% as most power plants are gas powered.

    “Having an additional 3 billion scf is badly needed as it will sort out all the gas issues we have today in Nigeria,” he said.

Dangote plans to start laying the pipelines before the end of the year with the expectation that the first one will be ready by mid-2017.