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Axxela Limited, via its subsidiary Transit Gas Nigeria Limited (TGNL) and in partnership with the Nigerian Gas Marketing Company Limited (NGMC), has successfully commissioned an 18km gas pipeline system in Ogun State, South West, Nigeria

Ogun state NigeriaAxxela aims to broaden its asset portfolio and strengthen our market play within the gas sector. (Image source: Free-Photos/Pixabay)

The 150 mmscfd pipeline runs from Ibefun to Rite Foods Limited’s large-scale factory in Ososa, Ogun State.

First gas has been delivered through this pipeline to Rite Foods Limited, the manufacturer of Bigi Drinks, Rite and Bigi Sausages and Fearless Energy Drinks. With consistent gas supply, the fast-moving consumer goods company will achieve significant energy cost-savings.

Speaking on the project commissioning, Axxela CEO Bolaji Osunsanya highlighted the company’s commitment to growth and industrialisation. “This venture is in firm alignment with our near-to-long term market expansion strategy, and emphasises our push to broaden our asset portfolio and strengthen our market play within the gas sector. Axxela/NGMC pioneered gas distribution in the Greater Lagos area, and our present positioning enables us significantly increase our industrial and commercial client footprint across the south-western corridor.”

The Sagamu Gas Distribution Zone (SGDZ) development is a joint venture between NGMC and TGNL (the NGMC/TGNL JV) which commenced operations in 2019 by delivering gas to growing industrial users including Apple & Pears Limited, West Africa Soy Industries Limited, Uraga Power Solutions Limited, Emzor Pharmaceuticals Industries Limited and Coleman Technical Industries Limited.

NGMC managing director Faruk Usman said, “As part of our strategy, we are delighted to pioneer and implement initiatives with private players, which is a clear indication of our willingness to collaborate and ensure the success of Nigeria’s Gas Expansion Programme.”

In line with Axxela’s and NGMC’s commitment to the International Finance Corporation’s (IFC) Performance Standards, Corporate Social Responsibility (CSR) projects have been implemented across the host communities of the operation.