Sagas Seals Deal With NGC On Gas Project
SAN FRANCISCO, April 03, (THEWILL) – Sagas, a division of Borkir Energy Company Limited and subsidiary of the Dangote Group, signed a 20-year sales and purchase agreement with the Nigerian Gas Company Limited (NGC) to supply and distribute compressed natural gas as alternative automotive fuel, in Lagos on March 28.
The novel scheme, which will reduce gas flaring, involves Sagas getting high pressured gas from the NGC, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) and the Federal Government, through its vast network of pipelines and compressing it to a cheaper, cleaner and sustainable alternative fuel or dual fuel for profitable business.
Speaking at the ceremony, Chairman of Borkir, Alhaji Sani Dangote, explained that the agreement signing was the beginning of a new era in gas utilisation in Nigeria. He said vehicles would be converted to be able to use the gas, adding that conversion centers would be established at various points across the federation. He disclosed that the first outlet is now operational in Ikeja in partnership with a foreign firm.
He further disclosed that a pilot conversion for gas usage had commenced with the enlistment of Dangote Group’s 5,000 trucks, which are being converted for dual fuel usage (gas and diesel), with the hope of converting 20,000 vehicles within the next one year.
While pointing out the advantages of use of gas as alternative fuel for vehicles, over petrol or diesel, he said gas, which is readily available in large quantity in the country, is environmentally-friendly, has guaranteed price stability and improves engine durability.
Dangote, who said Sagas has so far invested more than $20 million in the project, added that the company would soon embark on public demonstration of the process to show how safe, cost-effective and friendly the use of gas is to motorists. He thanked NGC for the confidence reposed in his company.
In his remarks, the Managing Director of NGC, Engr. Saidu Mohammed, described the agreement as part of the gas revolution agenda of the government saying the nation has enough gas to drive the project.