Axxela Commissions Nigerian Gasline
Gas and power portfolio company Axxela has commissioned its Greater Lagos IV (GLIV) gas pipeline network, it said March 27. The $30mn pipeline runs from Ijora to the Lagos Island Marina axis and will supply gas to commercial and industrial off-takers along the same route, including First Power and Island Power.
The 12-inch, 30mn ft³/d pipeline was developed by the company's Gaslink Nigeria Limited subsidiary in collaboration with the Nigerian Gas Marketing Company.
According to Axxela COO Rasheed Olaoluwa, the pipeline project reinforces the company's commitment as trailblazers in the distribution of natural gas to industries. He said: "This occasion demonstrates our continued contribution to the growth of Lagos State's burgeoning socio-economic landscape, we are immensely proud of this pioneering effort. There remains considerable demand for power generation, and this pipeline extension project will revitalise industrial development across the metropolis."
Axxela is the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak 80mn ft³/day to over 160 industrial and commercial customers.
In February 2019, Axxela was assigned national scale issuer ratings of BBB + (NG) and A2 (NG) in the long term and short term respectively by Global Credit Ratings. It said Axxela is a leading player in the Nigerian natural gas distribution market, with the largest gas distribution capacity, strengthened by strategic partnerships, long term distribution arrangements, and strong relationship with technical partners. The ratings are valid until September 2019.
Nigeria's state producer, NNPC, has also shown commitment to natural gas diversification to aid economic development. During the recent Gas Exporting Countries Forum at Doha, Qatar, Saidu Mohammed, chief operating officer, Gas and Power at the Nigerian National Petroleum Corporation (NNPC), told attendees that Nigeria's aim is to ensure that gas-to-power targets, gas-based industrialisation aspirations and export market targets are met. Axxela was formerly Oando Gas & Power.