FG kick-starts automated storage facilities with reliable pipeline network

The Federal Government has  said the nation’s crude refining, storage and distribution system is been re-run to support already existing automated storage facilities with a reliable pipeline network.

In line with above desire, the federal government further disclosed that a total of ninety six firms have bided for the rehabilitation of the Nigerian National Petroleum Corporation (NNPC) pipeline infrastructure connecting all the four refineries.

Managing Director of the Nigerian Pipelines and Storage Company (NPSC), Mrs. Ada Oyetunde, disclosed that the public opening bid for the projects was carried out in Abuja last week through virtual process. She said the exercise was in conformity with the mandate of her agency and the goal of the Federal Government to prioritise the rehabilitation of critical downstream infrastructure across the country.

She listed the facilities to be rehabilitated by successful bidders to include critical pipelines for crude oil supply to the refineries and evacuation of refined products, depots, and terminals.  Oyetunde notes further that the objective was to get them ready to support the refineries when they become operational after their rehabilitation; although she did not give timeline when the rehabilitations of the refineries would be ready.

She said, “An open tender for pre-qualification of interested companies was published in August 2020 in the national dailies, for the rehabilitation of NNPC downstream critical pipelines and associated depots and terminal infrastructure through Finance Build Operate and Transfer (BOT) to cover the 4 lots.

“The four lots are Lot 1: Port Harcourt Refinery related infrastructure, Lot 2: Warri Refinery related infrastructure, Lot 3: Kaduna Refinery related infrastructure and Lot 4: System 2B related infrastructure.”

She explained that the BOT arrangement would provide a reliable pipeline network and automated storage facilities for effective crude feed, product storage and evacuation from the nation’s refineries post-revamp through an open access model.

According to her, above designs would charge market reflective prices and tariffs to recover the investment.

This is even as the agency’s Group General Manager, Supply Chain Management, Mrs. Aisha Katagum, commended the Infrastructure Concession Regulatory Commission (ICRC) and the Bureau of Public Procurement (BPP) for providing guidance for the project. Katagun assured bidders of a fair, equitable and transparent selection process.

NPSC said stakeholders who observed the public bid opening exercise include representatives of Nigeria Extractive Industries Transparency Initiative, Civil Liberties Organisations, ICRC and BPP.