(Lagos, Nigeria) – Oando Gas & Power Limited (“OGP”), the foremost indigenous developer and provider of gas and power solutions, and a fully-owned entity of Oando PLC, has commenced development of a mini Liquefied Natural Gas (LNG) facility through its Transit Gas Nigeria Limited (“TGNL”) subsidiary in Ajaokuta, Kogi State.
The pioneering liquefaction plant is primarily directed towards fulfilling 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. 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%, while significantly decreasing carbon emissions.
Commenting, OGP CEO, Mr. 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.”
The modular nature of mini LNG projects require minimal infrastructure development, thus substantially reducing design complexity, and the time and cost attributable to traditional gas pipeline development.
TGNL will establish the Ajaokuta liquefaction plant where feed gas will be cooled to get the gas into a liquid state. The liquefied gas will then be stored at the plant site, and subsequently conveyed to respective customer regasification facilities by taking advantage of Oando’s transportation expertise as demonstrated in its Downstream operations.
With an unlimited supply radius across the country, the Ajaokuta mini-LNG project will supply gas to key foundation off-takers including strategic power plants and commercial concerns.
The multi-billion naira facility will commence operations in Q2 2017.
About Oando Gas & Power
Oando Gas & Power is a pioneering indigenous developer in gas processing, transmission, and distribution in Nigeria, and is responsible for the development, operation, and management of Oando PLC’s participation in the gas and power sector. OGP has consistently demonstrated competitive market leadership by providing gas and power solutions to over 160 industrial and commercial customers via several subsidiaries including: Gaslink Nigeria Limited, Central Horizon Gas Company, Gas Network Services, and Alausa Power Limited.
ENDS
For further information, please contact:
Ainoije ‘Alex’ Irune
Head, Corporate Communications
Oando Plc
airune@oandoplc.com
+234 (1) 448 4500 Ext. 6270
Website: www.oandoplc.com