Rivers State Government and Oando Plc are pooling resources to ensure timely completion of an 8.5 km expansion of the natural gas distribution network in the Port Harcourt Franchise Area, which will ultimately raise the company’s Gas Supply capacity.
The project, according to Head, Corporate Communications, Oando Plc., Alero Balogun, is being executed by the Central Horizon Gas Company (CHGC), a Special Purpose Vehicle set up by Oando and the Rivers State Government, which is focused on the rehabilitation, operation and expansion of the existing natural gas distribution network in Greater Port Harcourt City and the Trans-Amadi area.
The pipeline which will be from the Above-Ground Installation (AGI) in Trans-Amadi to BUA Sugar Refineries, is expected to boost BUA’s productivity, provide substantial cost-savings, and open the state to a new wave of industrialisation via natural gas utilisation.
Balogun noted that the expansion was on the back of Oando’s agreement through its midstream subsidiary, Oando Gas & Power (OGP) 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 in August 2011 by Chief Executive Officer, OGP, Mr. Mobolaji Osunsanya, and the then Permanent Secretary, Rivers State Ministry of Energy and Natural Resources, Dr. George Nwolu.
The 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 utilising gas as a catalyst for industrial development in the state.
Oando’s gas integration strategy includes methods of transmission and distribution to fulfil market requirements while the gestation period for the implementation of the Nigerian Gas Master Plan elapses. The company has developed over 260km of gas pipelines across the country and is also a vested player in the virtual pipeline market through a Compressed Natural Gas facility in Lagos and an ongoing Mini LNG development in Ajaokuta.
The company’s pioneering 20-mmscf/day liquefaction plant in Ajaokuta 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 per cent, while significantly decreasing carbon emissions.
The company is also spearheading several long-term projects including a 400km Southwest to Northwest gas pipeline and a Central Processing Facility (CPF), which will serve as the primary gas gathering, and processing hub in the Niger Delta.
