Pipeline Vandalism Has Cost Nigeria N8.04 Billion In 2015

Pipeline vandalism has cost Nigeria N8.04 billion since January, the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) has said.

Speaking at a press briefing in Warri, Delta State, the Managing Director, NGC, Dafe Sejebor, disclosed that since the beginning of this year the country has witnessed an unprecedented increase in the spate of gas pipeline vandalism.

He added that within the last two months, it has recorded three major attacks on its pipeline network, mainly in the Niger Delta region.

Sejebor, who was represented by Executive Director, Services, Joseph Olisa, said; “whenever these pipelines are sabotaged, we are forced to shut down the pipeline, and we defer a minimum of 200 million Standard Cubic Feet (SCF), of gas per day.”

He put the average price of gas at $3 per unit of 1,000 scf, adding that it takes an average of two weeks to repair the damage, and an average of one week to locate the damaged spot and mobilise personnel, equipment and materials to site. He revealed that minimum cost for the repair of a damaged pipeline in the Niger Delta region is about N160 million.

At an average price of $3/1,000 SCF, multiplied by 200 million SCF product loss plus repairs, Nigeria may have lost about N8.01 billion between January and now. This is put at 1,500 megawatts, as a number of power plants will be deprived of gas to generate electricity.

The NGC boss lamented over the recent increase of pipeline vandalism and its negative effects on the economy and the operations of the company.

“The spate of vandalism of our pipelines have been on the increase and this is alarming. We are hurting, especially as it has affected us negatively. It is a willful damage and not as a result of our inability to maintain our pipelines.”

He further stated that the NGC is already holding talks with all its key stakeholders, such as its contractors, security agencies and leaders of communities in its areas of operations, on ways to ensure the safety of the pipelines.

Also commenting on the issue, the Executive Director, Operations, NGC, Gabriel Aggrey, reiterated that vandalism in the last three weeks had drastically increased. He also lamented over the amount spent by the NGC in order to fix vandalised pipelines.

Bizwatchnigeria

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