Axxela joins WAGP gas suppliers, putting 100mmscf/d target within reach
The 678-kilometer West African Gas Pipeline could soon ramp capacity to 100m standard cubic feet of gas a day, as Axxela Limited gets approval to ship the product through the pipeline to customers in Benin, Togo and Ghana
After an exhaustive due diligence process conducted by the West African Gas Pipeline Company (WAPCo) and approval by the West African Gas Pipeline Authority (WAGPA), power plants, commercial entities, and residential homes in neighbouring West African countries could see improved gas supply.
“This is a significant achievement in the vista of our operations and speaks to our position as pioneers in the industry,” said Bolaji Osunsanya, Axxela CEO.
Osunsanya adds, “As WAGP shippers, we expect to monetize gas resources in the West African region, increase the throughput on the WAGP, and thereby reduce the applicable unit transportation tariff.
“Axxela is committed to providing cleaner and cost-effective fuel for power generation to spur industrial growth and economic empowerment across the sub-region.”
Formerly known as Oando Gas & Power Limited (OGP), the erstwhile Midstream business subsidiary of Oando PLC (Oando), in October announced the change of its corporate identity and branding to Axxela Limited (Axxela), in a bid to renew its ambition and strategic growth plan.
Analysts are optimistic this development would be a game changer for the company. “It’s a good deal for Axxela to get international clients. This could be good from a financing level as such deals will have security to ensure payment is made unlike in the domestic market where lack of availability of dollars at a time meant that payments were made in Naira,” said Dolapo Oni, head of energy research at EcoBank.
Axxela’s new shipper status marks a significant milestone in the company’s decade-plus business development activities within the region.
The WAGP is a 678-kilometer pipeline that connects the existing Escravos-Lagos Pipeline System (ELPS) from Itoki, Nigeria and extends along the West African coast, terminating in Takoradi, Ghana. The pipeline has gas delivery laterals from the main line extending into Benin, Togo, and Ghana.
WAGP, operated by WAPCo, is a joint venture between public and private sector companies from Nigeria, Benin, Togo and Ghana.
The company’s main mandate is to transport natural gas from Nigeria to customers in Benin, Togo and Ghana in a safe, responsible and reliable manner, at prices competitive with other fuel alternatives.
WAPCo is owned by Chevron West African Gas Pipeline Ltd (36.9%); Nigerian National Petroleum Corporation (24.9%); Shell Overseas Holdings Limited (17.9%); and Takoradi Power Company Limited (16.3%), Societe Togolaise de Gaz (2%) and Societe BenGaz S.A. (2%) according to details on the company’s website.
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