17 May 2016, Lagos — IN line with fulfilling gas supply requirement for power supply, Oando Gas & Power Limited, OGP, has commenced development of a mini liquefied Natural Gas, LNG, facility.
The company said the facility through its Transit Gas Nigeria Limited (TGNL) subsidiary in Ajaokuta, Kogi State, will also address challenges ranging from embedded generation and industrial clusters in the Northern region, as well as stranded customers in the South.
In a statement, Oando said the facility, will bring about a significant reduction in energy costs by up to 40 percent while significantly decreasing carbon emissions.
The statement also said that the company’s 20 million standard cubic feet per day, mmscf/day liquefaction plant will commence operations in the second quarter of 2017 as it is primarily directed towards fulfilling the gas supply requirement for power supply. The statement read in part: “It is 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.
“Also, 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 percent, while significantly decreasing carbon emissions.”
Commenting on the initiative, Oando’s CEO, Mr. Bolaji Osunsanya, said in the statement: “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,” he added.
He said further: “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.
*Ediri Ejoh – Vanguard