Oando plans gas distribution expansion project in Lagos
Oando Plc is planning to embark on a major gas distribution network expansion project to boost commercial activities in the Central Business District of Lagos.
In a statement on Friday, the company said it had entered into a deal to extend the natural gas distribution network of its Greater Lagos Area franchise from Ijora to Marina CBD.
According to the firm, the Marina pipeline extension project is approximately 8km in length, 12 inches in diameter, and is expected to take about 18 months to complete.
Oando explained that the project would be executed by Gaslink Nigeria Limited, one of its subsidiaries, in conjunction with Oilserv Limited.
The Chief Executive Officer, Oando Gas and Power, Mr. Bolaji Osunsanya, said the project would increase the company's available gas distribution capacity of 85 million standard cubic feet per day, with 55mmscf/d currently being utilised.
He said the venture would have a substantial socio-economic impact on the CBD, as the availability of natural gas in those areas would attract industrial investors and businesses thereby enhancing commerce and industry in Lagos State.
He said, 'We are extremely pleased with the strides we have made thus far, and our overall strategy remains focused on the aggressive expansion and growth of our asset portfolio. The extension of the Greater Lagos network further underlines our push to strengthen our market play within the vibrant gas sector.'
According to him, natural gas is a cheaper alternative to liquid fuels such as diesel and Low Pour Fuel Oil that have been used by industries and commercial customers to augment the epileptic power supply from the national grid.
As such, he stressed that the project would have positive environmental impact as natural gas, considered more environmentally friendly, would displace diesel/LPFO as the primary fuel source in the industries and power generation plants.
'An enumeration exercise conducted by OGP in the Lagos Island area revealed considerable demand particularly for power generation, and key offtakers along the proposed pipeline route have expressed their interest and have begun to sign Gas Sale and Purchase Agreements with Gaslink,' Osunsanya added.