Gas production is set to increase by 20 million cubic feet as Oando Group announced plans to invest $36 million, about N7.2 billion, in the construction of three gas-compression plants in the country within the next one year.
In an interview with Bloomberg in Lagos, Bolaji Osunsanya said the plants with an initial capacity of 20 million cubic feet of gas per day, are to be located in Aba, Abia State; Port Harcourt, Rivers State; and a third to be located in central Nigeria. Gas-energy.
According to him, with domestic gas demand projected to reach 5 billion cubic feet daily in the next two years, Oando is targeting big energy users such as cement and steel plants, who currently rely on diesel to generate at least 1.5 megawatts of power per factory, to switch to gas. Osunsanya noted that compressed to become more than 200 times smaller than its original volume, gas could be delivered to companies connected to pipelines during supply disruptions.
He further said that the company is building a business to truck natural gas to industrial users whenever they are cut off from pipeline supply. He said: “We’re basically creating a market for the future, markets that otherwise you won’t have been able to use pipelines to serve. Today, it is possible to truck compressed natural gas there.