New 18km Ogun gas pipeline to serve industrial clusters

Axxela Limited via its subsidiary Transit Gas Nigeria Limited (TGNL), and in partnership with the Nigerian Gas Marketing Company Limited (NGMC) a subsidiary of the Nigerian National Petroleum Corporation, has successfully commissioned an 18km gas pipeline system in Ogun State, South West, Nigeria.

The 150mmscfd pipeline runs from Ibefun to Rite Foods Limited’s large-scale factory in Ososa, Ogun State and is expected to serve industrial clusters within the region.

With consistent gas supply, the fast-moving consumer goods company will achieve significant energy cost-savings.

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.”

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.”