Tinubu Tasks IOCs to Back Local Firms as Nigerian Company Builds Gas Compressor Stations

President Bola Tinubu has urged international oil companies operating in Nigeria to give indigenous engineering firms greater opportunities in major energy projects, as Lee Engineering Group builds two compressor stations expected to enable the Escravos–Lagos Pipeline System to deliver up to 2.3 billion standard cubic feet of gas daily.

Tinubu made the call on Thursday while receiving the founder and chairman of Lee Engineering Group, Dr Leemon Ikpea, at the State House, Abuja.

The President reaffirmed his administration’s Nigeria First policy, saying it must translate into more contracts for capable Nigerian companies, increased use of locally manufactured equipment and the creation of skilled jobs.

The two compressor stations, being constructed by Lee Engineering under an Engineering, Procurement and Construction contract in Edo State, are designed to raise operating pressure along the pipeline and enable it to deliver gas at its expanded capacity.

The pipeline’s designed capacity was increased from 1.1 billion to 2.3 billion standard cubic feet per day under the Escravos–Lagos Pipeline System II expansion. However, the compressor stations are required to support operations at the higher capacity.

According to the Presidency, the project is expected to improve gas transportation to power plants and industries along the pipeline corridor, while supporting increased supplies to neighbouring West African countries through the West African Gas Pipeline.

The project could also create additional export revenue opportunities for Nigeria as the country seeks to expand the utilisation of its natural gas resources.

Tinubu said international oil companies should strengthen partnerships with indigenous engineering firms that have demonstrated the capacity to execute complex projects.

He also cited the executive orders and presidential directives issued in 2024 on local content compliance, contracting costs and approval timelines as measures aimed at attracting investment, reducing delays and expanding opportunities for Nigerian businesses.

Ikpea commended the President’s Nigeria First policy, saying Nigerian engineering companies had invested significantly in modern equipment, technology and skilled personnel to compete for projects previously dominated by foreign contractors.

He disclosed that Lee Engineering’s fabrication yard in Warri, Delta State, was manufacturing some components for the compressor stations.

According to him, the facility houses advanced fabrication equipment capable of supporting complex engineering projects.

Ikpea said greater participation by indigenous companies in major energy projects would help retain jobs, technical expertise and more economic value within Nigeria.

The development comes amid efforts to expand domestic gas infrastructure and improve the availability of natural gas for electricity generation, industrial production and regional exports.