Dangote Gas Pipeline Project

The proposed East West Offshore Gas Gathering System (EWOGGS) Project being promoted by the Dangote Group consists of two 38-in, 550km pipelines, each with a capacity of 1.5 Bcf/day. The subsea pipelines will create a corridor for evacuation of trapped gas from offshore platforms in Nigeria to allow their monetization. Most of the associated gases produced offshore in Nigeria are currently being re-injected or flared. Hence the Dangote strategy is to serve as a transporter only, transporter and processor, or buyer for the producers of the gases.

The two pipelines running side by side, will gather gas along a route off the coast of Nigeria, all the way from Bonny in Rivers State through Ogidigben and Olokola for delivery at a new build Gas Receiving Plant to be located at the Dangote Refinery Complex in Lekki, Lagos, Nigeria. The dual pipelines are capable of transporting a total of 3 bscfd of gas per day.

Dangote Industries’ expectation is that Nigeria should be able to utilize 10Billion cubic feet of gas per day, in its power plants and factories, by 2020. In the last 12 years, Nigeria has built over 10 thermal power plants with nameplate capacity in excess of 5,000MW, expected to be fueled by natural gas. The current gas consumption by factories, power plants and gas-based industries in Nigeria is slightly less than 2Billion cubic feet per day (Bcf/d). The main constraint to growth is mainly inadequacy in the supply of natural gas.

The list of acreages from which the EWOGGS is expected to extract natural gas includes ExxonMobil operated OMLs 70 and 138, Amni-operated OML 52, Shell operated OML 77, Sunlink-held OML 144 and First E&P held OMLs 71 and 72, in which West African E&P, a Dangote subsidiary, has significant stake. The starting point for the pipelines is a new-build platform in OML 72, gathering gas from the hub with OML 52/70/71/72. The pipeline system consists of 7 gas receiving and 2 gas off-take subsea tie-in points along the route.

The proposed Gas Receiving Station consists of pig receivers, slug catchers, pressure reduction stations, gas metering, condensate stabilization, condensate storage, and condensate truck loading and including utilities and support infrastructure.

From the outcome of the concept selection studies, the gas injection pressure is 80 – 120 barg, while the arrival pressure at Lekki is 45 barg. The pipeline specification is 38 inch (OD), ANSI 900, Grade X65 CS. The capacity of the Gas Receiving Plant at Lekki is 2 x 1.5 Bscf/d. Both the pipeline and gas receiving facilities would be installed in two phases, the first phase to be commissioned in September 2018, and second phase in February 2025. The first phase is expected to deliver gas for the use of Dangote Industries, including the proposed fertilizer plant in the refinery complex, and other identified industrial and power plant users. The second phase would be demand-driven, but is expected to include spur lines and connections to other offtakers including West African Gas Pipeline (WAGP), Ogidigben Industrial Park and Escravos – Lagos Pipeline System (ELPS).

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