PRESS STATEMENT
Lagos, Nigeria – Oando Gas and Power PLC (“Oando”), Nigeria’s leading natural gas distribution company, and a subsidiary of Oando PLC, is pleased to announce that it has signed an agreement with the Rivers State Government to assume the operation and expansion of the states existing gas infrastructure in the greater Port Harcourt industrial areas. The agreement was signed by Mr. Osunsanya, Chief Executive Officer, Oando Gas and Power and Dr. George Nwolu, the Permanent Secretary, Rivers State Ministry of Energy and Natural Resources, at an official handing over event organised by the Ministry in Port Harcourt, Rivers State, on Wednesday, August 3, 2011.
This agreement followed the company’s successful participation in a tender process by the state government to actualise its gas master plan. The objective was to find a qualified private sector partner to operate, rehabilitate and expand the state’s gas distribution grid for the purpose of utilizing gas as catalyst for industrial development in the state.
Under the concession agreement, Oando will rehabilitate and operate the existing natural gas infrastructure at Trans-Amadi and expand the network to Choba, Airport, New UST area of Greater Port Harcourt City, Abuloma, Heliconia Park, Reclamation Road and other adjoining areas. The existing gas pipeline has a throughput of about 40mmscm/annum which currently serves industries in Trans- Amadi including Nigerian Bottling Company, First Aluminum Company and Stallion Foods.
The development, which will deliver gas as a cheaper and environmentally-friendlier energy source to users, is expected to catalyse rapid industrial development and enhance the state’s economy.
Commenting, Mr. Bolaji Osunsanya, states: “We are excited about this development which represents an opportunity for Rivers State to join the league of regions that have enjoyed strong industrial tenancy and economic growth through the adoption of cheaper and reliable gas as energy fuel. As a company, this is another major milestone in our quest to build sub-Saharan Africa’s largest natural gas pipeline grid in Nigeria and is in line with Oando’s principal aspiration of evolving home-grown solutions to Nigeria’s energy challenges. This development provides an immediate boost to our revenue profile starting from August 2011 resulting in additional value creation for our shareholders.”
Also commenting, Dr. George Nwolu states, “This concession is a major milestone for the Rivers State Government and people of our great state. We are confident we have found capable partner in Oando Gas and Power, who brings wealth of experience from its other franchises and their commitment to infrastructure development as evident in the 128km gas pipeline built from Akwa Ibom to Cross River states. We have no doubt that this will signpost rapid economic development of the state as industries will be attracted by the availability of cheap and reliable fuel. This concession is specifically designed to help build indigenous capacity, improve community relations, corporate social responsibility and jobs creation for the people for Rivers State.”
Dr. Nwolu commented further; “Oando has worked assiduously throughout the negotiating process and have demonstrated diligence, professionalism and strong commitment to this project”.
Nigeria is rich in associated and non-associated gas reserves, estimated in excess of 180 trillion cubic feet, ranking currently as the 8th largest holder of proven natural gas reserves in the world. Unfortunately, local utilisation of gas is very low – a problem attributed to inadequate infrastructure that would enable supply of natural gas to last mile users in Nigeria.
Oando, through its subsidiary – Gaslink Nigeria Limited, pioneered the distribution of natural gas via pipelines to industries in Nigeria. Its 100 km gas pipeline network in Greater Lagos, connects 110 customers making it the leading local distribution company in Nigeria. Another Oando subsidiary – East Horizon Gas Company (EHGC) is presently completing a 128km natural gas transmission line traversing Akwa Ibom and Cross River States. This pipeline will deliver gas to United Cement Company (UNICEM), and other industrial clusters in both states.
Commenting further, Mr Osunsanya said; “We are committed to expanding our footprints to other locations in Nigeria, enabling industries access cheaper, safer, and cleaner fuel in order to boost their global competiveness. Our target is to replicate the success recorded on the Lagos natural gas distribution operation in other parts of Nigeria and West Africa.”
Ends
For More information, please contact:
Meka Olowola
Head, Corporate Communications
Oando PLC
5th, 7th -10th Floors
2, Ajose Adeogun Street,
Victoria Island
Lagos, Nigeria
DL: 01-2805593
Website: www.oandoplc.com