Companies

Oando expands southern gas footprint

by Editor

October 5, 2017 | 2:13 am
  |     |     |   Start Conversation

Oando plc, Nigeria’s leading indigenous energy company, and Rivers State government are closing in on the completion of an 8.5km expansion of the natural gas distribution network in the Port Harcourt Franchise Area from the Above-Ground Installation (AGI) in Trans-Amadi to BUA Sugar Refineries (BUA).

The project is being executed by the Central Horizon Gas Company (CHGC), a special purpose vehicle set up by Oando and the Rivers State government, and which is focused on the rehabilitation, operation, and expansion of the existing natural gas distribution network in Greater Port Harcourt City and the Trans-Amadi area.

The pipeline will boost BUA’s productivity, provide substantial cost-savings, and open the state to a new wave of industrialization through natural gas utilisation.

Oando’s holistic gas integration strategy includes methods of transmission and distribution to fulfil market requirements while the gestation period for the implementation of the Nigerian Gas Master Plan elapses.

The company has developed over 260km of gas pipelines across the country and is also a vested player in the virtual pipeline market through a Compressed Natural Gas facility in Lagos and an ongoing Mini LNG development in Ajaokuta.

The pioneering 20mmscf/day liquefaction plant in Ajaokuta 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%, while significantly decreasing carbon emissions.

The company is also spearheading several long term projects including a 400km 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.

In its determination to build Africa’s largest sub-Saharan natural gas pipeline grid, Oando is creating access to thousands of industries in the nation’s quest to leverage gas to drive industrialisation on a large scale. The company 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.

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 stalled in realizing 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.

The CHGC expansion, which will boost BUA’s productivity, is scheduled for completion by the end of Q4 2017.

Tags:

by Editor

October 5, 2017 | 2:13 am
  |     |     |   Start Conversation

Big Read |  

Analysis

What Nigeria must do before signing AfCFTA

Nigeria’s President Muhammadu Buhari last Wednesday gave a hint that he would sign the African Continental Free Trade Area (AfCFTA)...


MTN Banner ADS 2


WSE

Newsletter Fixed income