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Oil firm commissions 18km gas pipeline in Ogun State

Axxela Limited  in partnership  with Transit Gas Nigeria Limited (TGNL), a subsidiary of the Nigerian National Petroleum Corporation (NNPC)  has successfully commissioned an 18km gas pipeline system in Ogun State, Nigeria.

A statement signed by the Corporate Communications Manager, Kevin Johnson-Azuara and Chief Strategy Officer, Fisayo Duduyemi, noted that the 150 million standard cubic feet per day of gas (mmscfd) pipeline runs from Ibefun to Rite Foods Limited’s large-scale factory in Ososa, Ogun State. First gas has been delivered through this pipeline to Rite Foods Limited, the manufacturer of Bigi Drinks, Rite and Bigi Sausages, and Fearless Energy Drinks. With consistent gas supply, the fast-moving consumer goods company will achieve significant energy cost-savings, they added.

Speaking on the project commissioning, Axxela Chief Executive Officer, Bolaji Osunsanya, highlighted the company’s commitment to growth and industrialisation. “This venture is in firm alignment with our near-to-long term market expansion strategy, and emphasises our push to broaden our asset portfolio and strengthen our market play within the gas sector.

“Axxela/NGMC pioneered gas distribution in the Greater Lagos area, and our present positioning enables us significantly increase our industrial and commercial client footprint across the south-western corridor. By providing the gas advantage, we are enabling the development of self-sustaining industrial clusters to bolster Nigeria’s industrialization and socio-economic empowerment,” Osunsanya said.

The Sagamu Gas Distribution Zone (SGDZ) development is a joint venture between NGMC and TGNL (the NGMC/TGNL JV) which 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.

Speaking on the NGMC/TGNL JV and the new pipeline grid, NGMC Managing Director, Faruk Usman said: “As part of our strategy, we are delighted to pioneer and implement initiatives with private players, which is a clear indication of our willingness to collaborate and ensure the success of Nigeria’s Gas Expansion Programme. The SGDZ will contribute to the development of Sagamu and its environs by facilitating industrial growth, cleaner energy generation, and fostering community employment through gas availability.

“In line with Axxela’s and NGMC’s commitment to the International Finance Corporation’s (IFC) Performance Standards, Corporate Social Responsibility projects have been implemented across the host communities of the operation.

Axxela is a Helios Investment Partners LLP portfolio company, and the first privately-owned designated natural gas shipper on the West African Gas Pipeline (WAGP). Axxela is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 180 industrial and commercial clients via a vast network of gas infrastructure.

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