President [Bola Ahmed Tinubu](https://en.wikipedia.org/wiki/Bola_Ahmed_Tinubu) on Thursday confirmed his administration’s determination to unlock the country’s gas resources, improve electricity supply, generate jobs and increase export earnings, as indigenous firm Lee Engineering celebrated the completion of two compressor stations that will enable the Escravos–Lagos Pipeline System to operate at its full design capacity of 2.3 billion standard cubic feet of gas per day.
Key details of the development include: the two mid‑line compressor stations are being built in Edo State; the pipeline’s capacity was upgraded from 1.1 billion to 2.3 billion standard cubic feet per day under the ELPS II expansion; the stations will raise operating pressure to allow the pipeline to deliver the higher volume; and the project is expected to boost gas supply to power plants, industrial users and neighbouring West African nations via the West African Gas Pipeline. President Tinubu said, "Nigeria First must translate into more contracts for capable Nigerian firms, greater use of locally manufactured equipment and more skilled jobs for Nigerians."
**What is the Escravos–Lagos Pipeline System?**
The Escravos–Lagos Pipeline System (ELPS) is a major natural‑gas conduit that transports gas from the Niger Delta offshore fields to the Lagos region and onward to the West African Gas Pipeline. The ELPS II expansion, completed recently, doubled the line’s design capacity, creating a need for additional compression to move the larger volume efficiently.
**Why are the new compressor stations essential?**
Although the pipeline can technically handle 2.3 billion standard cubic feet per day, the original compression infrastructure was sized for the earlier 1.1 billion‑cubic‑feet capacity. The two new stations raise the pressure along the mid‑line segment, ensuring the gas can travel the full distance without bottlenecks and reach end‑users at the intended volume.
**How will the project impact Nigeria’s economy?**
By strengthening gas transportation, the stations will support reliable power generation for factories and households, increase gas exports to West African neighbours, and generate additional foreign‑exchange earnings. The initiative also aligns with Tinubu’s “Nigeria First” policy, which seeks to award more contracts to local engineering and manufacturing firms.
**What did the President say about local‑content policy?**
Tinubu urged international oil companies operating in Nigeria to give competent Nigerian engineering and manufacturing firms greater participation in large‑scale energy projects. He highlighted recent 2024 executive orders and presidential directives that tighten local‑content compliance, streamline contracting costs and shorten approval timelines, aiming to attract investment while protecting Nigerian jobs and expertise.
**What is Lee Engineering’s role and capability?**
Lee Engineering Group’s Founder and Chairman, Chief Dr Leemon Ikpea, explained that the company’s fabrication yard in Warri, Delta State, is producing several components for the compressor stations and houses some of the most advanced fabrication equipment in the country. He asserted that Nigerian firms have invested heavily in modern technology and skilled personnel, enabling them to undertake complex EPC projects that were previously the domain of foreign contractors, thereby retaining more jobs, expertise and economic value within Nigeria.
The collaboration between the federal government and a home‑grown engineering firm underscores a broader shift toward indigenous participation in Nigeria’s energy sector, with the expectation that the new infrastructure will catalyse industrial growth and enhance the nation’s position as a regional gas hub.