Rivers and Oando to expand natural gas distribution network
The Rivers State government and Nigeria’s leading indigenous energy company, Oando PLC, are closing in on the completion of an 8.5 kilometres expansion of the natural gas distribution network in the Port Harcourt Franchise Area from the Above-Ground Installation (AGI), in Trans-Amadi, to BUA Sugar Refineries (BUA).
The project is being executed by the Central Horizon Gas Company (CHGC), a Special Purpose Vehicle set up by Oando and the Rivers State government, 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 will boost BUA’s productivity, provide substantial cost-savings, and open the state to a new wave of industrialization via natural gas utilisation.
This expansion is 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 Mr. Osunsanya, Chief Executive Officer, OGP and the then Permanent Secretary, Rivers State Ministry of Energy and Natural Resources, Dr. George Nwolu. It 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.
Oando’s holistic gas integration strategy includes methods of transmission and distribution to fulfill 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 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%, while significantly decreasing carbon emissions.
The company is also spearheading several long term projects including a 400km South-West to North-West gas pipeline and a Central Processing Facility (CPF) which will serve as the primary gas gathering and processing hub in the Niger Delta.
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