24 April 2018, Sweetcrude, Lagos – The development of critical gas pipeline infrastructure and a far-reaching national grid remains pivotal to Nigeria’s industrialisation and economic empowerment, Chief Executive Officer of Axxela Limited, Bolaji Osunsanya, has said.
Osunsanya spoke in reaction to the Nigerian National Petroleum Corporation, NNPC’s, award of the Engineering, Procurement, Construction, EPC, contract for the $727 million Ajaokuta – Abuja portion of the Ajaokuta-Kaduna-Kano, AKK, pipeline project to Axxela Limited, formerly known as Oando Gas & Power, and Oilserv Limited.
The contract was awarded to the companies following their 2013 submission of bid in response to an expression of interest for a contractor-financed EPC development of the AKK Pipeline Project.
“As forerunners in the sector, we remain actively committed to the long-term realisation of the Nigerian Gas Master Plan. The development of critical gas pipeline infrastructure and a far-reaching national grid remains pivotal to the country’s industrialisation and economic empowerment.
“Consequently, the implementation of the AKK Pipeline Project will enable power-starved communities across the northern region have greater access to electricity, while providing stranded commercial and industrial customers with a cleaner and more efficient source of energy,” he said in a comment on the contract.
To expand its operational base and increase value-adding opportunities in the gas and power space, Oando had divested a portion of its erstwhile midstream vehicle, Oando Gas & Power, to Helios Investment Partners, an Africa-focused private investment firm.
Oando Gas & Power subsequently rebranded as Axxela. The company exports gas to neighbouring countries such as Benin, Togo and Ghana with a target to deliver over 100 million standard cubic feet per day via its newly acquired shipper status on the West Africa Gas Pipeline to fuel power plants, commercial entities, and residential homes.
