The Gas Aggregation Company of Nigeria (GACN) has given a gas purchase order (GPO) to the Nigerian Gas Marketing Company (NGMC) for the development of a joint mini-liquefied natural gas (LNG) plant in Ajaokuta, Kogi State, with Transit Gas Nigeria Limited, a subsidiary of Axxela Limited.
With gas supply assured, the project considered as a milestone, will help commercial and industrial businesses across Nigeria adopt the LNG solution for their power and process needs and achieve over 40 per cent in cost-savings compared to alternative fuels.
The liquefaction plant is located in the middle of the country to enable easy access of the LNG trucks to the north’s stranded gas market and other parts of the country.LNG storage facilities will also be installed at customer locations to ensure continuous gas supply.
Natural gas is an environmentally friendly fuel that burns cleaner than other fossil fuels. Gas-fired equipment are more efficient and have significantly contributed to the reduction of greenhouse gas emissions across the world. The LNG plant is expected to be completed by next year and will boost the productivity of existing industries, attract new investments into the country, and also create jobs for Nigeria’s growing populace.
In 2017, Axxela’s Managing Director, Mr. Bolaji Osunsanya, when the company was known as Oando Gas and Power (OGP), said the project would be implemented as joint venture with the Nigerian Gas Company (NGC), which has been split into two – the Nigerian Gas Processing and Transmission Company (NGPTC) and the Nigerian Gas Marketing Company (NGMC).
According to Osunsanya, the mini- LNG plant will be liquefying 20 million standard cubic feet per day (mmscf/d) of gas. He told The Nation in Abuja that the essence of building the Ajaokuta mini-LNG is to create other ways of bring natural gas to industrial and commercial concerns because pipeline vandalism was taking a toll on their operations.
He said: “OGP is developing LNG facility via its newly-created Transit Gas Nigeria Limited (TGNL) subsidiary in partnership with Nigerian Gas Company (NGC). The facility aims at meeting the gas supply requirements for captive power plants, embedded generation, and industrial clusters in the Northern region, as well as stranded customers in the South, adding that the firm has developed over 260km of gas pipeline distribution network, and pioneered the development of gas infrastructure and solutions across the south.
According to him, the company is increasing gas sales levels, complete and inaugurate Greater Lagos 4 (GL4) project and the Central Horizon Gas Company (CHGC) expansion as well as regional expansion opportunities into Benin, Togo, Ghana, and Senegal.
Osunsanya said the firm’s five critical flanks were to ensure gas supply security, develop virtual pipelines asset stable and gas processing infrastructure and expansion of last mile distribution infrastructure with focus on regional growth, among others.