- Signs Grant Agreement to execute feasibility Study on natural gas pipeline
Lagos, Nigeria – Oando Gas and Power Limited (OG&P), Nigeria’s leading indigenous natural gas distribution and captive power solutions company, and a subsidiary of Oando PLC, today announced that it has entered into agreement with the United States Trade and Development Agency (USTDA) to jointly fund a feasibility study towards the development of an interstate natural gas transportation pipeline from the Excravos-Lagos Pipeline System to other Southwest States.
The agreement was signed on behalf of Oando Gas and Power by the company’s Chief Executive Officer, Mr. Bolaji Osunsanya, whilst the United States Consul General to Nigeria, Mr. John Stafford signed for the USTDA, at an official signing ceremony hosted by the US Consul General on Wednesday, November 30, 2011 in Lagos.
The study will evaluate technical and economic considerations for the development of a natural gas pipeline originating in Sagamu in Ogun State and passing through Ibadan (Oyo State) and Ilorin (Kwara State) before terminating at Jebba, Kwara State. The pipeline will also have extensions to the adjacent states of Osun and Ekiti. The supply of natural gas to the South-West States will provide an opportunity for industries in the region to access a cheaper, reliable and cleaner fuel that will boost power generation and economic growth through increased industrialization. This development is in line with the current drive by the Nigerian National Petroleum Corporation (NNPC) to boost domestic gas supply under the Nigerian Gas Master Plan.
Commenting on the partnership, Mr. Osunsanya, stated; “the USTDA assistance provides the much desired boost to our aspiration to develop the Nigerian Gas Grid and in so doing, support the Federal Government in achieving its gas revolution agenda.” Commenting further, he said: “Oando Gas and Power continues to seek opportunities to expand its gas infrastructure to reach more industries through pipeline distribution grid and Compressed Natural Gas (CNG) stations.”
Also commenting, Mr. Stafford stated; “The U.S. Trade and Development Agency (USTDA) is pleased to partner with Oando Gas and Power Limited on this important project, which will be of mutual economic benefit to the United States and Nigeria, and will serve to facilitate trade and strengthen our countries’ economic ties.”
About Oando Gas and Power (OGP)
Oando Gas and Power is the management company for all Oando PLC’s subsidiaries operating in the gas and power space:
Gaslink (Lagos Greater Area): In the Lagos greater area, over 120 industries are connected to our 100km Gaslink grid, cutting their energy costs by as much as 50%. This has tremendously improved their profitability and made them globally competitive brands. Gaslink has operated this franchise for more than 11 years now without any safety incident.
Akute Power: On the back of the Lagos pipeline, Oando Gas and Power built a 12.15MW Power Plant for the Lagos Water Corporation. This gas fired plant increased the efficiency of the corporation by 300% to provide potable clean water to the residents whilst saving the state $3.9million annually.
Central Horizon Gas Company (Port Harcourt Disco): In August 2011, Oando Gas and Power assumed the management of an existing gas pipeline in Port Harcourt. The pipeline which has a throughput of about 40 million standard cubic metres per year (mmscm/year), currently serves industries in Trans-Amadi area. This project is poised to inject life into the industries for which Port Harcourt was known but have declined over the years due to the high cost of energy.
East Horizon Gas Company (Akwa Ibom – Cross River State): Oando Gas and Power added a 128km gas pipeline from Akwa Ibom to Cross River State to its growing list of natural gas pipeline systems. The pipeline was built by East Horizon Gas Company (EHGC), a special purpose vehicle set up by Oando under a joint venture arrangement with the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
Connected to the existing NGC’s Obigbo – ALSCON pipeline at Ukanafun in Akwa Ibom State, the natural gas system can deliver up to 100 million standard cubic feet per day (mmscf/d) to industries in the region, including an initial supply of 22 mmscf/d to its foundation customer, United Cement Company (UNICEM), a 2.5 million metric tonnes per annum cement Plant, located in Calabar, Nigeria.
Central Processing Facility: In March 2011, Oando Gas and Power in consortium with Italian giant ENI, was awarded Federal Government’s mandate to develop a Central Processing Facility at Obiafu, Rivers State as part of the Nigeria Gas Master Plan programme and as an enabler of the Government’s rapid industrialisation agenda.
On completion, the Oando-ENI CPF is expected to process about 600 million standard cubic feet of gas per day to be made available to the domestic market.
