Axxela Limited, an indigenous gas player, has spent a whopping N216 billion ($600 million) in the development of over 260 kilometres of gas pipeline infrastructure, virtual pipelines, and captive power plants in the country.
This is an indication that the opportunity presented by the Nigerian Gas Master Plan is beginning to attract the desired investments in the midstream subsector of the oil and gas industry.
The company, which is a pioneer developer of gas infrastructure and solutions across Southern Nigeria, is establishing new infrastructure network under its medium to long term to ensure gas supply security.
To further improve investments in the gas value chain to create job opportunities and monetize gas that is flared, Axxela is further developing virtual pipelines asset stable, gas processing infrastructure, long term appropriate infrastructure financing and expansion of last mile distribution infrastructure, with a particular focus on regional growth.
In a chat with energy correspondents, chief executive officer of the company, Bolaji Osunsanya, noted that the company initially started out as Gaslink, with its Lagos franchise, focusing on gas delivery across Mainland Lagos.
Osunsanya said, “We evolved to become Oando Gas and Power, the parent company of Gaslink, Central Horizon Gas Company, our joint venture (JV) subsidiary with the Rivers State government, which is completing an additional nine kilometres of pipeline infrastructure within the Trans-Amadi area as well as our Compressed Natural Gas (CNG) entity, Gas Network Services, which is our pioneering virtual pipeline initiative.
“We developed and divested from our captive power plants, as we focus on larger scale power projects”.
He said with a vibrant gas sector, Nigeria can achieve her immediate power generation aspirations, while in the long term socio-economic effects of constant power generation via gas include improved productivity, eradication of dirty fuels, reduced cost of living for Nigerians and the positive impact on the environment.
He added that natural gas could also be the catalyst required to spur Nigeria’s industrialization, as it is a critical feedstock for several industries such as fertilizer production and petrochemical industries.
He added that increased gas utilization would mean rapid industrialization leading to increased job creation, capacity building and technology advancement.