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NETCO PARTICIPATES IN ENGINEERING CONSULTANCY
In February 2010, NETCO was awarded a contract by the Ministry of Petroleum Resources (MPR), for Engineering Consultancy Services for the Nigerian Gas Master Plan (NGMP) Implementation. This award followed an elaborate assessment of NETCO's capabilities and several years of experience in engineering design and project management services in the oil and gas sector of the Nigerian economy.

The Gas Infrastructure Blueprint, developed under the NGMP, focuses on the establishment of a robust gas infrastructure that will anchor the cost effective deliverability of gas to the domestic, regional and export markets. The blueprint envisages the development of g a s t r a n s p o r t a t i o n a n d processing infrastructure hubs in three Franchise Areas which cover the Niger Delta region. The infrastructure development in each Franchise Area will be technically and commercially driven by the private sector. Prospective investors have been given the opportunity to form consortia to invest in the development of gas t r a n s p o r t a t i o n a n d processing infrastructure in one or more of the identified Franchise Areas.

The philosophy behind the blueprint is that Feed Gas from the flow stations and designated nodes of the Upstream Suppliers within a Franchise Area will be transported to a Central Processing Facility (CPF), where the gas will be treated and Natural Gas Liquids(NGLs) extracted. The Pipeline Sales Gas will then be evacuated via the nearest Gas Transmission Pipeline system, whilst the extracted NGLs will be stored in NGL storage and handling facilities pending export into the domestic or external markets. The Investor is required to determine the optimum configuration of gas transportation from Designated Nodes to CPF and modular processing facilities in terms of capacity, location and connectivity within each Franchise Area. The Upstream Supplier shall gather all stranded Gas within the Franchise Area and evacuate same to the Designated Node in line with its Domestic Supply Obligations. The Investor shall work in concert with Upstream Suppliers within the Franchise Areas to optimize the transportation network for gas from the Designated Nodes to the CPF.

Following the submission of bids by prospective investors in October 2009 and subsequent presentations made to the Ministry of Petroleum Resources in February 2010, NETCO has been mandated to carry out a Technical Evaluation of the bids and submit a report to the MPR. NETCO's detailed
scope of services include assessment of:
  • Operability of the proposed designs
  • Completeness of the design with respect to gas gathering, processing and storage
  • Integrity of the design, i.e. suitability and applied proven technologies, suitable to the Nigerian environment v Compliance with the local content guidelines in the execution strategy
  • Feasibility of the proposed timelines and procurement strategies.
  • Also included in NETCO's scope are:
  • Realistic evaluation of cost estimates provided by the bidders;
  • Compliance with all necessary international and national design codes;
  • Assessment of the limitation of the designs.
The outcome of the technical evaluation will determine if the commercial submission of the bidders will be considered or not. NETCO partnered with KBR Granherne Inc., in-order to assess the robustness and workability of the initial feasibility studies presented by the bidders for the Pipelines and Central Processing Facility (CPF) systems. Granherne Inc. initially collaborated with MPR for the preparation of the Information memorandum that was earlier issued to the bidders.

At the end of the evaluation exercise, a report will be issued to MPR to enable them progress to the next step, which is the commercial analysis of the investors' proposals.