FG backs local firm to unlock 2.3bn cubic feet gas capacity

The federal government has urged international oil companies operating in Nigeria to award more contracts to indigenous engineering firms, as Lee Engineering Group builds two compressor stations to unlock the full capacity of the Escravos–Lagos Pipeline System.

President Bola Tinubu said the government’s Nigeria First policy must translate into more contracts for capable Nigerian firms, greater use of locally manufactured equipment and more skilled jobs.

Tinubu spoke on Thursday while receiving the Founder and Chairman of Lee Engineering Group, Leemon Ikpea, at the State House, Abuja.

According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Lee Engineering is handling the engineering, procurement and construction of two midline compressor stations in Edo State.

The facilities are required to raise operating pressure and enable the Escravos–Lagos Pipeline System to deliver its full designed capacity of 2.3 billion standard cubic feet of gas per day.

The pipeline’s capacity was increased from 1.1 billion to 2.3 billion standard cubic feet daily under the ELPS II expansion.

Tinubu urged international oil companies to build stronger partnerships with indigenous engineering companies that had demonstrated the capacity to execute complex projects.

He said the Nigeria First policy was aimed at expanding opportunities for Nigerian businesses and ensuring that more economic benefits from major energy projects remained within the country.

The President also cited his administration’s 2024 executive orders and presidential directives on local content compliance, contracting costs and approval timelines as measures to attract investment, reduce delays and expand opportunities for Nigerian businesses.