The Management of Oando Plc on Friday announced plans to extend its natural gas distribution network from Ijora to the Marina Central Business District of Lagos.
Mr Bolaji Osunsanya, Chief Executive Officer of Oando Gas and Power (OGP) made the announcement while signing a contract agreement on the project with Gaslink Nigeria Ltd in Lagos.
Osunsanya said that Gaslink would collaborate with Oilserv Ltd., one of its subsidiaries, in the execution of the project and explained that the project would boost commercial activities in Lagos.
He added that the pipeline extension would increase Oando’s current gas distribution capacity of 85 million standard cubic feet per day, but did not give the projected figure.
“The venture will have a substantial socio-economic impact on the central business district as availability of natural gas in those areas will attract industrial investors and businesses and enhance commerce and industry in Lagos,” 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 network of the greater Lagos network further underlines our push to strengthen our market play within the vibrant gas sector.
“The Marina pipeline extension project is approximately eight-kilometres in length, 12 inches in diameter and is expected to take approximately 18 months to complete,” Osunsanya added.
He said that an enumeration exercise conducted by the company in Lagos Island revealed a considerable demand for natural gas, particularly for power generation.
“Natural gas is a cheaper alternative to liquid fuels such as diesel and Low Pour Fuel Oil (LPFO) that have been used by industries and commercial customers to augment the epileptic power supply from the national grid,” he said.
Stressing that natural gas was more environmentally-friendly, Osunsanya said that it would “displace diesel or LPFO as the primary fuel source in industries and power generation plants in the areas the infrastructure extends to”.
NAN
