Transit Gas Nigeria Limited, a subsidiary of Axxela Limited, and in partnership with Nigerian Gas Marketing Company Limited (NGMC), a subsidiary of the Nigerian National Petroleum Company Limited (NNPC) has successfully commissioned another segment of the Sagamu Gas Distribution Zone, a 12km natural gas pipeline connecting Coleman Cables to Celplas Industries Park.

The 25mmscf/d capacity gas pipeline runs from Ibefun to Celplas Industries Free Zone Enterprise along Sagamu-Benin Express Way, Sagamu, Ogun State.

Speaking on the project commissioning, Bolaji Osunsanya, Axxela’s Chief Executive Officer, said, “This commissioning reinforces our commitment to deliver innovative solutions that create sustainable and efficient energy utilisation for the benefit of our customers. We understand the important role that industrialisation plays in the economic development of our nation, and we will continue to position as the energy partner of choice by providing the natural gas advantage to the different sectors’’.

Read also: Nigeria seeks cooperation with Qatar on gas development

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The Sagamu Gas Distribution Zone is a growing industrial cluster delivering natural gas to a wide range of Axxela’s customers within the region. The pipeline network currently serves reputable industrial customers like Rite Foods Limited, Apple & Pears Limited, Emzor Pharmaceutical Industries Limited, West Africa Soy Industries Limited and Coleman Technical Industries Limited, amongst others.

Prakash Hathiramani, the Managing Director, Celplas Industries Nigeria Limited, stated, “As a company, achieving effective cost savings is a major part of our operational goals, and we believe the switch to natural gas will significantly accelerate our journey to energy cost efficiency’.

In our clime, it is common knowledge that power constitutes one of the largest cost centres for many businesses, hence, with the numerous advantages of natural gas, this is a step in the right direction.”

The Sagamu Gas Distribution Zone is a joint venture between NGMC and Transit Gas. This collaboration will continue to expand and create natural gas distribution networks in Nigeria leveraging Axxela’s industry expertise and further increasing natural gas utilisation across the country.

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By Isaac Anyaogu • December 7, 2021

Isaac Anyaogu is an Assistant editor and head of the energy and environment desk. He is an award-winning journalist who has written hundreds of reports on Nigeria’s oil and gas industry, energy and environmental policies, regulation and climate change impacts in Africa. He was part of a journalist team that investigated lead acid pollution by an Indian recycler in Nigeria and won the international prize - Fetisov Journalism award in 2020. Mr Anyaogu joined BusinessDay in January 2016 as a multimedia content producer on the energy desk and rose to head the desk in October 2020 after several ground breaking stories and multiple award wining stories. His reporting covers start-ups, companies and markets, financing and regulatory policies in the power sector, oil and gas, renewable energy and environmental sectors He has covered the Niger Delta crises, and corruption in NIgeria’s petroleum product imports. He left the Audit and Consulting firm, OR&C Consultants in 2015 after three years to write for BusinessDay and his background working with financial statements, audit reports and tax consulting assignments significantly benefited his reporting. Mr Anyaogu studied mass communications and Media Studies and has attended several training programmes in Ghana, South Africa and the United States

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