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Greater Lagos Phase III Expansion Project

The Greater Lagos Phase III expansion project is the current project that seeks to take gas to Tincan Island through Creek Road. It will also increase and expand the volume of Gas supplied to the Apapa area, which will in turn increase the total capacity of gas delivered to customers.

The order of increase follows the expansion strategy which is in three distinct segments:

Phase III A

1. Linking the Ikeja 1B pipeline with the GL II to transfer excess volumes from the Ikeja 1B pipeline. This will increase the available volume in Apapa to 10,858 scm/hr and 22,387 scm/hr in total.

Phase III B

1.  Seeks to Increase volume of gas supply to Apapa by laying new pipeline from Motorways to Anthony (14”); Anthony to Alaka (18”); and Alaka to NPA (12”) gate.
2. Gas delivery to Apapa will increase to 34,292 scm/hr and 49,928scm will be the total gas available.

Phase IIIC

1.  Seeks to connect the new pipelines with the starting point of Gaslink’s distribution network.
2. Gas to the new pipeline will be supplied from this point and the connection with Ikeja 1B in segment 1
3. Segment 3 also entails connecting the Amuwo-Odofin and Apapa ends of GL II to supply gas to Tincan Island.

The present expansion phase is expected to increase available gas at Apapa to 75,388 scm/hr and a total volume capacity of 101,613 scm/hr. Gaslink’s total supply is expected to increase to 2,438,736scm/d or 86.11 mmscf/d upon completion of these projects.

Potential customers have indicated their willingness to off-take the additional volumes the expansion will generate.

UNICEM PROJECT

The United Cement Company of Nigeria Limited (UNICEM) is a joint venture company set up by the following organizations:

1. Flour Mills
2. Orascom Industries
3. Holcim

The plan is for UNICEM to build a 2.5 million Metric Tonnes per annum capacity plant in Mfangmosing and the project has been formally approved by the Federal Government.

To power the plant will be natural gas and the Nigerian Gas Company (NGC) has been approached for gas supply. Already, preliminary study for gas connection has been undertaken by East Horizon Gas Company, a subsidiary of Oando Gas & Power, while the Federal Government and the Nigeria National Petroleum Corporation (NNPC) have given their approval for the gas supply project on a Build Operate and Transfer (BOT) basis with NGC.

A BOT Agreement has to be signed with the Nigerian Gas Company and UNICEM outsourced the project to Oando Gas & Power. The East Horizon Gas Company is the vehicle to Build, Operate and eventually transfer ownership of the gas pipeline network to UNICEM

Currently, the cement plant is far gone in the construction stage, while the gas line is awaiting the delivery of long lead items procured for construction to commence. Provisional project time line indicates Q2 2008 for the completion of both the gas line and the cement plant.

The gas supply project includes construction of a gas supply line from the existing Obigbo - ALSCON pipeline at Ukanafun to the Cement Plant Site at mfamosing. The total length of the pipeline is 124km; with a diameter of 18 inches and the pipeline will pass through land, swamp and water.

It is expected that upon completion, the line will deliver 22 mmscf/d at the beginning of the project which will grow to 50 mmscf/d in the medium term.

To ensure the project is in line with global EHSQ standards, an Environmental Impact Assessment (EIA) has been completed.