Business News of Wednesday, 9 January 2019
Axxela Limited, sub-Saharan Africa’s preferred fast-growing gas & power portfolio company, has signed a Gas Transportation Agreement (GTA) with the West African Gas Pipeline Company Ltd. (WAPCo) to transport over 15 million standard cubic feet per day (“mmscf/d”) of natural gas via the West African Gas Pipeline (WAGP) to Lome, Togo.
During the signing ceremony held in Accra, Ghana, Axxela CEO, Bolaji Osunsanya, said: “The partnership between Axxela, WAPCo, and the West African Gas Pipeline Authority (WAGPA), portends major benefits for the West African gas markets. The flow of new molecules beyond the existing foundation contracts will diversify gas supply sources into the WAGP and is a testament to Axxela’s proactive mid-term growth plan propelled by our collective professionalism, strategic partnerships, and drive to achieve excellence across our business enterprise. Undoubtedly, we remain firmly committed to the positioning of gas as a catalyst for socio-economic empowerment across the region’s key markets.”
Also commenting at the signing ceremony, WAPCo Managing Director, Walter Perez, stated: “With public and private players increasingly working together to propel the gas advantage, our partnership with Axxela speaks to our overarching strategy for increased regional supply and participation. WAPCo is continuously driven to spur regional gas integration, and we are highly delighted to welcome Axxela on board the WAGP, and look forward to a fruitful and industry-defining collaboration.”
Axxela is also developing a Floating Storage and Regasification Unit (FSRU) in West Africa’s main commercial hub, Lagos, with the capacity to serve Nigeria and the region. The concept will see the injection of gas via a regasification terminal at a strategic location along the city’s coastline, with gas supplied via LNG shuttle vessels. The virtual pipeline solution will also enable uninterrupted gas supplies and enhance gas utilization across key industrial clusters.
The WAGP is a 678km regional pipeline linking the Escravos-Lagos Pipeline System (ELPS) in Nigeria to Takoradi in Ghana, with gas delivery laterals from the main line extending to Cotonou (Benin), Lome (Togo), and Tema (Ghana).
Axxela is the pioneer developer of Nigeria’s foremost natural gas distribution network and has subsequently grown to become the largest private sector natural gas distributor in Nigeria, delivering at peak 80 million standard cubic feet per day (“mmscf/d”) to over 160 industrial and commercial customers via a vast network of gas infrastructure. With over 280km in gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company.