Friday, April 12, 2019 7:45PM /Press Release by
In a Press Release today announcing its strategic move to improve LNG Gas supply in the domestic Nigerian market, Axella, a wholly-owned subsidiary of Helios announced a partnership arrangement in which it believes it should be able to increase natural gas feedstock along national virtual pipelines.
Leveraging Strong Partnership
In a move expected to expand the domestic power sector value chain, The Nigerian Gas Marketing Company has been issued a Gas Purchase Order (GPO) by the Gas Aggregation Company of Nigeria (GACN) for the development of a Liquefied Natural Gas (LNG) Plant in Ajaokuta, Kogi State. The project a Joint Venture partnership with Transit Gas Nigeria Limited, a subsidiary of Axxela Limited, one of sub-Saharan Africa’s fastest growing gas and power portfolio Company, is designed to improve the power solution proposition available to the domestic Nigerian economy.
Providing Unique Solution
Management of Axxela has noted that with gas supply assured, the GPO is a project milestone which will ensure that commercial and industrial businesses across Nigeria that adopt the LNG solution for their power or process needs achieve over 40 percent in cost-savings compared to alternative fuels i.e. diesel. The liquefaction plant is strategically located in the middle of the country to enable easy access of the LNG trucks to the Northern region’s stranded gas market and other parts of the country. LNG storage facilities will also be installed at customer locations to ensure continuous gas supply.
In Pursuit of Cleaner Power
Natural gas--predominantly methane--is noted to be an environmentally friendly fuel that burns cleaner than other fossil fuels. Power sector experts point out that Gas-fired equipment are more efficient and have significantly contributed to the reduction of greenhouse gas emission across the globe. The LNG plant is expected to be completed by 2020 and will increase productivity of existing industries, attract new investments into the country, and create fresh jobs for Nigeria’s growing population (currently estimated at 198 million people).
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