Oando Gas and Power Limited (OGP), has commenced development of a mini Liquefied Natural Gas (LNG) facility through its subsidiary, Transit Gas Nigeria Limited (“TGNL”) in Ajaokuta.
This is to meet up with 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.
At the completion of the mini LNG, 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. It will also bring about a significant reduction in carbon emission.
The Ajaokuta LNG facility will commence operations in the second quarter of 2017.
The Chief Executive Officer (CEO) of OGP, 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.”
“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.”
“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.