Ogun Gas Supply Project To Reduce Cost, Boost Production – MAN
The Manufacturers Association of Nigeria (MAN) has applauded the Transit Gas Nigeria Limited (TGNL), over the successful commission of an 18 kilometre gas pipeline system in Ogun State, South West, Nigeria.
Speaking in an exclusive interview with LEADERSHIP, at the commissioning of the Nigerian Gas Marketing Company Limited, NGMC/TGNL joint venture (JV) the new pipeline grid expected to transport 150 million standard cubic feet (MSCF) of gas per day to Ososa, Ogun State, MAN chairman, Mr. Frank Onyegbu, said the project will bring down cost of production and drive efficiency.
According to him, the cost of electricity from public grid and private power generation has pushed many firms into extinction while imported goods from Asia especially China is driving remaining businesses out. He noted that Nigeria has abundant gas reserves but dearth of infrastructure and pricing is making it difficult to access.
The project will transport 150 million standard cubic feet (MSCF) of gas per day through pipeline that runs from Ibefun to Rite Foods Limited’s large-scale factory in Ososa, Ogun State. It is an initiative of Axxela Limited, the parent company of Transit Gas Nigeria Limited (TGNL) in partnership with the Nigerian Gas Marketing Company Limited (NGMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), based on a long-time strategic partnership.
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 industrialisation and socio-economic empowerment.”
Also speaking on the project, the managing director, NGMC, Engr. 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.”
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.
Source: Leadership Nigeria