Nigeria-based Oando has announced plans to build a gas plant for up to US$350mn in its focus on integrating gas production with its supply business
Bolaji Osunsanya, MD of Oando Gas and Power, said that the plant, with a capacity to process 300mn cfd, will take 24 months to complete and cost between US$300mn and US$350mn. He added that the project was in the development stage at present and was likely to be launched in the Q1 2016.
“We have done transport in the past, we are getting into (gas) processing right now. We are working ourselves up the chain,” Osunsanya told Reuters in an interview.
The Lagos-listed company’s gas and power unit reported a net income of US$19mn in 2016 for the nine months up to September, down from US$22mn in the same period in the previous year.
According to Osunsanya, Nigeria will need around US$55bn to develop gas infrastructure over the next seven years in order to meet growing demand. The money would be needed to build new pipelines, processing plants and drill new wells. He also estimated demand to go up to 5bn cfd, and said that Nigeria had room to ramp up gas plants as current capacity was around 2bn cfd.
London-listed Nigerian firm Seplat is also boosting gas capacity. Following the growth in demand, it plans to increase gross output from around 120mn cfd to 400mn cfd by 2017.
