An 18km gas pipeline system in Ogun State, Nigeria, has been commissioned by the Sagamu Gas Distribution Zone (“SGDZ”) development, a joint venture between Transit Gas Nigeria Limited (“TGNL”) and Nigerian Gas Marketing Company Limited (“NGMC”).
The NGMC/TGNL JV otherwise the SGDZ commenced operations in 2019 by delivering gas to growing industrial users including Apple & Pears Limited, West Africa Soy Industries Limited, Uraga Power Solutions Limited, Emzor Pharmaceuticals Industries Limited, and Coleman Technical Industries Limited.
TGNL is a subsidiary of the gas distribution services provider, Axxela Limited (“Axxela”, or the “Company”) while NGMC is a subsidiary of the Nigerian National Petroleum Corporation.
An overview of the 18km gas pipeline system in Ogun State
The 18km gas pipeline infrastructure, with a capacity of 150 million standard cubic feet per day, connects Ibefun to the Rite Foods Limited agro-industrial plant in Ososa.
On the one hand, this new installation will allow stakeholders to monetize gas resources while providing cleaner and more profitable fuel for energy production and on the other hand reduce the transport tariff. This should stimulate industrial growth and the economic empowerment of communities.
First gas has already been delivered through this pipeline to the manufacturer of Bigi Drinks, Rite and Bigi Sausages, and Fearless Energy Drinks. With consistent gas supply, the fast-moving consumer goods company is expected to achieve significant energy cost-savings.
Commitment to growth and industrialization
Speaking on the project commissioning, Axxela Chief Executive Officer, Mr. Bolaji Osunsanya highlighted the company’s commitment to growth and industrialization saying, “This venture is in firm alignment with our near-to-long term market expansion strategy, and it emphasizes our push to broaden our asset portfolio and strengthen our market play within the gas sector.”
On the other hand NGMC Managing Director, Eng. Faruk Usman said that the company is delighted to pioneer and implement initiatives with private players, a clear indication of its willingness to collaborate and ensure the success of Nigeria’s Gas Expansion Programme.