Oando Gas and Power Limited (OGP), the
foremost indigenous developer and provider of gas and power solutions,
and a fully-owned entity of Oando Plc, has commenced development of a
mini Liquefied Natural Gas (LNG) facility through its Transit Gas
Nigeria Limited (“TGNL”) subsidiary in Ajaokuta, Kogi State.
The liquefaction plant is primarily
directed towards fulfilling the gas supply requirement for captive power
plants, embedded generation, and industrial clusters in the Northern
region, as well as stranded customers in the South. Off-takers,
particularly, power plants and industrial customers who currently
utilise liquid fuels such as diesel and LPFO, will be able to lower
energy costs by up to 40 per cent, while significantly decreasing carbon
emissions.
Commenting on the initiative, OGP CEO,
Mr. Bolaji Osunsanya said: “The establishment of the Ajaokuta mini LNG
project is in firm alignment with our mid-to-long term gas conversion
strategy. This venture further emphasises our push to broaden our asset
portfolio and strengthen our market play within the gas sector; and by
providing the gas advantage, we will help spur the development of
self-sustaining industrial clusters to bolster the country’s
socio-economic growth. LNG is a viable provisional solution and an
industry game-changer for the development of gas markets ahead of the
actualisation of a far-reaching nationwide gas pipeline network as
stipulated by the Nigerian Gas Master Plan.”
With an unlimited supply radius across
the country, the Ajaokuta mini-LNG project will provide the solution to
the perennial power challenges suffered in certain regions by supplying
gas to key foundation off-takers including strategic power plants and
commercial concerns.
OGP provides gas and power solutions to
over 170 industrial and commercial customers nationwide ensuring
cost-savings across board, powering economic development, and
engendering environmental awareness.
The company inaugurated its expanding
Compressed Natural Gas (CNG) programme in 2013, and is currently
spearheading several long term projects including a 400-kilometre
South-west to North-west gas pipeline and a Central Processing Facility
(CPF) which will serve as the primary gas gathering and processing hub
in the Niger Delta.
Commenting further on the company’s
strategic direction, Osunsanya said: “We are focused on aggressively
developing Nigeria’s gas infrastructure and the Midstream sector at
large as evidenced by the ongoing expansion efforts of our various
assets. We are poised to conclude the 10km Ijora to Marina expansion of
our Greater Lagos pipeline to increase our supply capacity and market,
while providing a cheaper power solution for industries and commercial
enterprises along the axis. In cooperation with the Rivers State
Government, we have also begun the 8km build out of the Central Horizon
Gas Company pipeline franchise within the Trans-Amadi area which will
have a socio-economic multiplier effect via the availability of power
generated, job creation, and the growth of businesses.”
Though Nigeria boasts proven natural gas
reserves of 187 trillion cubic feet (TCF), the 8th largest in the world
and the largest in Africa, the gas industry has failed to realise its
true potential due to a number of challenges including the lack of a
suitable long-term fiscal and regulatory framework, insufficient
infrastructure, sabotage in the Niger Delta, and slow market
consolidation. Analysts have continually touted gas as a means of
diversifying Nigerian revenues from the usual reliance on oil.
“Gas must occur as a market-driven
development, and Nigeria is not an exception. With oil, there is a ready
global market existing for the product. However in gas, you start with
an end market and then you develop the gas infrastructure, including
extraction, processing facilities, pipelines and connecting
infrastructure,” said Osunsanya.
Oando’s holistic gas integration
strategy includes methods of transmission and distribution through
virtual pipeline solutions such as LNG and CNG to fulfill market
requirements while the gestation period for the implementation of the
Nigerian Gas Master Plan elapses.
The multi-billion Naira Ajaokuta LNG facility will commence operations in Q2 2017.
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