3 November 2009
Sopuruchi Onwuka — Oando PLC, Nigeria's leading integrated energy solutions provider, has announced that it has concluded plans to upgrade its Liquefied Petroleum Gas (LPG) terminal at Apapa, Lagos, to a 7,600 MT capacity ultra-modern terminal.
This initiative is in line with Oando's commitment to ensure adequate availability of LPG (cooking gas) in the country.
To actualise this project, the company has awarded a Front-End Engineering and Design (FEED) contract to UK-based engineering design and project management firm, Optimus Services Limited (OSL). The FEED, to be executed at a cost of about N100 million, is estimated to be completed by the end of this year. And will form an integral part of acquiring all necessary regulatory approvals.
Construction of the terminal is scheduled for early next year subject to approval, whilst full operation is expected to commence by the end first quarter of 2011. The project will further consolidate Oando's leadership position of the downstream oil industry and enable it to dominate the domestic gas market.
Commenting, Mr. Ayo Ajose Adeogun, Chief Operating Officer, Oando Marketing states; "With this contract, we have moved the project a step closer to commercialisation. Increasing product reception capacity supports abundance of product stock. In turn, this will guarantee retail availability and make gas more affordable. Our ultimate objective is to encourage consumers to switch from wood and kerosene to cleaner and safer cooking gas. Oando is also committed to product storage optimisation with an effective market-leading freight system that will achieve two to three complete storage turns per month."
Also commenting, Mr. Wale Tinubu, Group Chief Executive, Oando PLC said; "It is regrettable that despite Nigeria being the world's 7th largest in gas reserves with 187 trillion cubic feet (tcf), the country has the lowest per capital consumption of LPG in the whole of Africa at only 0.45kg/person/annum, due to a lack of adequate infrastructure. For instance, the country has less than 20,000 MT functioning LPG shoreline storage available today as against the required 100,000 MT. Our ultra-modern terminal when completed by 2011, will provide in excess of 20% of the total storage requirement of the entire nation. This bold step underpins Oando's commitment to put an end to Nigeria's perpetual LPG shortages in the long term."
"As inadequacies exist right across the supply chain, we will also enhance product availability at the retail end by injecting 100,000 units of high grade cylinders annually. All these are geared toward ensuring that we maintain market leadership in a profitable sector and thus increase return to our shareholders" Mr. Tinubu adds.
Oando has consistently invested in critical energy infrastructure that will encourage mass utilization of safe and affordable fuel alternatives across the socioeconomic strata in Nigeria.
fter helping Saipem and Mitsubishi to set up shop, Nigeria's Oando could give Gazprom a leg-up in the Gulf of Guinea, establishing another effective strategy in the local content vehicle (LCV) initiative.
Oando Plc announcd it has signed a Memorandum of Understanding (MOU) with Russia's energy giant Gazprom to jointly develop projects in multiple sectors of Nigeria's oil and gas industry.
Gazprom is the favouured candidate for the national gas masterplan and the Trans-Saharan gas Pipeline projects which promise good commercial opportunities for the Russian giant and recommends it for business partnership.
Onado is a key player in the domestic gas distribution sector, leading commercial distribution operations in key industrial clusters in the country where maximum demand consumers guarantee commercial viability of the operations.
The partnership deal between the two companies is largely viewed as early bird positioning by both companies using a symbiotic approach in forging interdependence in strengthening already held positions.
Announcement of the deal comes as Spanish firms are rumoured to have activated moves to plug into the Trans-Saharan Gas Pipeline after other European firms including Shell, BP, BG and Total appear to have lost the patronage of the government on the promising gas venture due to frosts arising from disputes over the controversial Petroleum Industry Bill (PIB).
Under the MOU, Oando and Gazprom have agreed to collaborate in the development of oil & gas assets and infrastructure in the West African sub region and the Gulf of Guinea.
Gazprom is a globally renowned energy player with vast experience in exploration, production, transportation and refining of oil, gas and other hydrocarbons.
Commenting, Mr. Wale Tinubu, Group Chief Executive said, "This alliance is another significant milestone for Oando in our commitment to world-class gas solutions delivery in Sub-Saharan Africa. The Gazprom partnership will provide the leverage to further accelerate our gas development program, with us providing local technical expertise driven by the experience of developing pipeline infrastructure and our excellent execution capabilities, whilst Gazprom brings its wealth of experience as Europe's largest gas operator, an arrangement that will redefine the oil & gas industry and bolster local capacity."
"This is also consistent with Oando's strategic diversification program, which mitigates the company's exposure from today's economic climate and provides diverse revenue mix for the company thereby enhancing shareholder value," he added.
Oando is Nigeria's foremost energy group with investments and subsidiaries spanning the energy entire value chain including exploration and production; oilfield services; gas and power; international supply and trading and marketing.
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