Petroleum Africa
Find us on: 
Friday, December 5, 2014
Oando Gas & Power (OGP) signed a MoU with GE Nigeria to immediately engage in various initiatives aimed at their collaboration developing power generation projects, CNG, and small scale LNG virtual pipeline capabilities for gas-to-power projects on a non-exclusive basis.
Specifically, OGP and GE intend to work to develop the following projects in 2015 (collectively, the “Projects”):
1. 100-MW embedded power generation projects in Lagos using 5 GE TM2500 units (FastPower)
2. One (1) 10mmscf/d small scale LNG facility to serve identified markets at distances greater than 300kms away from the gas distribution grid.
3. Two (2) CNG facilities to serve local markets in Lagos and Port Harcourt environs.
To this end, the parties have agreed to complete the following by the end of December of 2014:
Securing funding for the Projects. GE commits to working with OGP to provide comprehensive “sales and project financing” (S&PF) project management capability to deliver a competitive financing package to OGP. Elements could include GE or OGP debt and equity, ECA sources, or other regional / partner finance sources.
Negotiation and execution of contracts with appropriate terms and conditions for GE equipment /services, enabling supply chain management of inventory for the Projects.
Establishing a leadership development paradigm for OGP via GE resources.
Speaking at the signing ceremony between the two companies, Wale Tinubu, Group Chief Executive Oando PLC, said, “While our main growth initiatives are in the Upstream, we remain steadfast in our commitment to grow our midstream business. This is evidenced by the ongoing expansion of our various assets including the construction of the 4th phase of our Greater Lagos pipeline to increase our capacity and customer base; the enhancement of our Port Harcourt pipeline network; and the growth of our Compressed Natural Gas distribution program. We are delighted to explore the possibility of pioneering initiatives with GE, such as the increase of our power generation by over 100MW, to complement our existing installed capacity of 68MW.”
Also speaking on the signing, the CEO, OGP, Bolaji Osunsanya highlighted the company’s commitment to growth. “We pioneered gas distribution in the Greater Lagos area, and our present positioning allows us to benefit from our first mover advantage and significantly increase our industrial and commercial customer footprint by expanding and linking eastern, western, and northern Nigeria in the near to midterm. We continually look to magnify our horizons by investing in unique independent power generation solutions that are critical to the enhanced socio-economic development of the country.”
OGP is focused on aggressively developing Nigeria’s gas infrastructure, and has several long term projects, which are at the conceptualization phase, such as the 400-km SW-NW EIIJ pipeline and the Central Processing Facility which will serve as a gas gathering and processing hub in the Niger Delta.
" alt="TAG Oil Completes Fraccing Program at Egypt’s T100 Well in Western Desert">
" alt="Sintana to Expand Asset Base in Namibia with Acquisition">
" alt="Luanda Gives Afentra Nod for Azule Acquisition">
" alt="TotalEnergies Increases Stake in ROC’s Giant Moho Field and Sells Mature Assets">
" alt="Africa’s $824 Billion Debt Burden and Opaque Resource-Backed Loans Hinder its Potential">
" alt="African Refiners Ponder Threats to Energy Security for Africa as Transition Takes Center Stage">
" alt="Invictus Inks Gas Sales MOU to Deliver Power to Eureka Gold Mine">
" alt="Globeleq Acquires the 25 MWp Winnergy Solar PV Plant in Egypt">
