Oando Gas & Power (OGP), the leading private sector gas distributor and developer of captive power solutions in Nigeria has signed a Memorandum of Understanding (MOU) with General Electric Nigeria to immediately engage in various initiatives as an indication of their commitment to collaborate in developing power generation projects, Compressed Natural Gas (CNG), and small scale Liquefied Natural Gas (LNG) virtual pipeline capabilities for gas-to-power projects on a non-exclusive basis.
Speaking at the signing ceremony between the two companies, Wale Tinubu, Group Chief Executive Oando PLC, said, “While our main growth initiatives are in the Upstream, we remain steadfast in our commitment to grow our midstream business. This is evidenced by the ongoing expansion of our various assets including the construction of the 4th phase of our Greater Lagos pipeline to increase our capacity and customer base; the enhancement of our Port Harcourt pipeline network; and the growth of our Compressed Natural Gas distribution programme. We are delighted to explore the possibility of pioneering initiatives with GE, such as the increase of our power generation by over 100MW, to complement our existing installed capacity of 68MW.”
Specifically, OGP and GE intend to work to develop the following projects in 2015 (collectively, the “Projects”):
- 100MW embedded power generation projects in Lagos using 5 GE TM2500 units (FastPower)
- One (1) 10mmscf/d small scale LNG facility to serve identified markets at distances greater than 300kms away from the gas distribution grid.
- Two (2) CNG facilities to serve local markets in Lagos and Port Harcourt environs.
By the end of December 2014, the parties have agreed to work towards the following:
- Securing funding for the Projects. GE commits to working with OGP to provide comprehensive “sales and project financing” (S&PF) project management capability to deliver a competitive financing package to OGP. Elements could include GE or OGP debt and equity, ECA sources, or other regional / partner finance sources.
- Negotiation and execution of contracts with appropriate terms and conditions for GE equipment /services, enabling supply chain management of inventory for the Projects.
- Establishing a leadership development paradigm for OGP via GE resources.
Also speaking on the signing, the Chief Executive Officer, OGP, Bolaji Osunsanya highlighted the company’s commitment to growth. “We pioneered gas distribution in the Greater Lagos area, and our present positioning allows us to benefit from our first mover advantage and significantly increase our industrial and commercial customer footprint by expanding and linking eastern, western, and northern Nigeria in the near to midterm. We continually look to magnify our horizons by investing in unique independent power generation solutions that are critical to the enhanced socio-economic development of the country.”
OGP is focused on aggressively developing Nigeria’s gas infrastructure, and has several long term projects, which are at the conceptualization phase, such as the 400km SW-NW EIIJ pipeline and the Central Processing Facility which will serve as a gas gathering and processing hub in the Niger Delta.
Ends
For more information, please contact:
Ainojie ‘Alex’ Irune
Head, Corporate Communications
Oando PLC
7th-10th Floors
2 Ajose Adeogun Street,
Victoria Island, Lagos.