As part of efforts towards tackling problems caused by lack of natural gas in the country, Oando Gas and Power Plc, a subsidiary of Oando Plc, has entered into partnership with the Rivers State government to operate the state gas infrastructure in Port Harcourt industrial areas.
Chief Executive Officer, Oando Gas and Power, Mr. Bolaji Osunsanya, who disclosed this to newsmen, said the agreement was signed between both parties at an official handing over ceremony organised by the state ministry of energy and natural resources recently in Port Harcourt.
The agreement he explained, followed the company’s successful participation in a tender process by the state government to actualise its gas masterplan, adding that the objective was to find a qualified private sector partner to operate, rehabilitate and expand the state gas distribution grid for the purpose of utilising gas as catalyst for industrial development in the state.
Under the concession agreement, he said Oando would rehabilitate and operate the existing natural gas infrastructure at Trans-Amadi and expand the network to Choba, Airport, UST area of Port Harcourt city, Abuloma, Elokia Park, Reclamation Road and other adjoining areas.
?He said the existing gas pipeline has an output of about 40mmscm/annum which currently serves industries in Trans-Amadi including Nigerian Bottling Company, First Aluminum Company and Stallion Foods, noting that the development would deliver gas as a cheaper and environmentally-friendlier energy source to users.
?Osunsanya, said:“We are excited about this development which represents an opportunity for Rivers State to join the league of regions that have enjoyed strong industrial tenancy and economic growth through the adoption of cheaper and reliable gas as energy fuel.
“ As a company, this is another major milestone in our quest to build sub-Saharan Africa’s largest natural gas pipeline grid in Nigeria and is in line with Oando’s principal aspiration of evolving home-grown solutions to Nigeria’s energy challenges. This development provides an immediate boost to our revenue profile starting from this month resulting in additional value creation for our shareholders.
?“We are committed to expanding our footprints to other locations in Nigeria, enabling industries access cheaper, safer, and cleaner fuel in order to boost their global competitiveness. Our target is to replicate the success recorded on the Lagos natural gas distribution operation in other parts of Nigeria and West Africa.”
Commenting on the project, the permanent secretary in the Rivers State ministry of energy and natural resources, Dr. George Nwolu, remarked:“This concession is a major milestone for the Rivers State government and people of our great State. We are confident that we have found a capable partner in Oando Gas and Power, who brings wealth of experience from its other franchises and their commitment to infrastructure development as evident in the 128km gas pipeline built from Akwa Ibom to Cross River State.”
“ We have no doubt that this will signpost rapid economic development of the state as industries will be attracted by the availability of cheap and reliable fuel. This concession is specifically designed to help build indigenous capacity, improve community relations, corporate social responsibility and jobs creation for the people of Rivers State.”
He said the company has worked hard throughout the negotiating process and demonstrated diligence, professionalism and strong commitment to the project.
Nigeria is rich in associated and non-associated gas reserves, estimated in excess of 180 trillion cubic feet, ranking currently as the 8th largest holder of proven natural gas reserves in the world.
However, local utilisation of gas is very low , a problem attributed to inadequate infrastructure.
?