Petroleum Africa
Find us on: 
Monday, April 7, 2014
Victoria Oil & Gas’ (VOG) operating subsidiary, Gaz du Cameroun S.A (GDC), will commence the 1-km gas pipeline crossing under the Wouri River to Bonaberi. GDC has completed initial project planning, including environmental and safety analyses and has received all the necessary permits, including the grant of Certificate of Environmental Conformity by the Minister in Charge of Environment, Nature protection and Sustainable Development.
Preparation work for the crossing including ground surveying has begun and drilling is scheduled to commence in May 2014, with completion planned 40 days later. GDC has undertaken a market analysis that has identified key consumers and has already signed 1.03 Mmscf/d of customers in anticipation of the pipeline roll-out, of which 0.83 Mmscf/d are near the northern pipeline exit. GDC believe that an immediate market of 2.41Mmscf/d is available in Bonaberi based on the conversion of thermal boilers from heavy fuel oil (HFO) to natural gas. Industries in the area include palm oil producers, food manufactures, and mixed light industry. Bonaberi is the second largest industrial zone in Douala with a significant number of industries using HFO and reliant on the existing source of electrical power.
GDC has also reached an agreement with drilling contractors who will provide their services on a fixed cost basis for the Wouri crossing. This will limit company’s exposure to any cost overruns.
VOG said that gas supply installation to gensets is well advanced and permits have been received by its customers to allow them to auto-generate. Six gensets are currently being installed by GDC with gas also being supplied to a seventh unit owned by a customer. The gensets and connections are all being installed within existing customer’s premises. Extensive surveying of customer sites and power transition planning must take place before engineering work starts. All pipeline work has been completed for the first three gensets and commissioning engineers are expected to arrive in Douala soon. The first gensets are scheduled to come online in early May.
The company also said that it has long recognized the potential for CNG as this product can be shipped in tankers to customers beyond the limits of its pipelines and toward that end has entered into discussions with strategic and financial partners with a view to develop an operating CNG business in Douala in early-2015.
Production levels of 3.2 Mmscf/d remain steady and VOG remained at operational break even through March. With scheduled thermal customer hook-ups and genset customers coming online, average production levels should rise to about 4 Mmscf/d by June 2014. Dangote, a large cement manufacturing customer is expected online in Q3 and will consume more than 0.5 Mmscf/d. Discussions between GDC and AES-Sonel aimed at providing 45 MW of gas fired temporary generating units to their power stations continue. Production costs will also be reduced substantially when the company completes the purchase of the rented Gas Treatment Plant before June.
Kevin Foo, chairman said; “Company operations are steady and satisfactory with production costs expected to decrease in the next months. Having completed all necessary permitting for the Wouri crossing we have commenced work to shoot the 1km of pipe, under the river, and then start supplying the Bonaberi area with gas. With firm contracts already in place for supply in Bonaberi we shall immediately begin connections upon entry to the North shore. Our Genset installation and supply work is going well with first generation expected in May 2014. We are excited about our venture into CNG which can give GDC greater catchment area for customers beyond our pipeline and outside of Douala.”
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
