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OANDO GAS & POWER<br />

(5th Floor)<br />

2, Ajose Adeogun Street,<br />

Vic<strong>to</strong>ria Island<br />

Lagos, Nigeria<br />

Tel: 234-1-2702794<br />

Fax: 234-1-7912295<br />

www.oandoplc.com<br />

Gas & Power


Vision<br />

To harness energy resources for<br />

the benefit of all stakeholders<br />

Mission<br />

To be the leading and most innovative<br />

energy company in our chosen market<br />

01<br />

02


Background<br />

<strong>Oando</strong> Gas & Power Limited<br />

We pioneered the private sec<strong>to</strong>r piping and distribution<br />

of natural gas <strong>to</strong> industrial and commercial consumers.<br />

<strong>Oando</strong> Gas & Power is the management company for all the subsidiary<br />

companies operating in the gas & power division.<br />

Our Strategic Focus<br />

• Aggressively create Nigeria's domestic gas grid and leverage the<br />

infrastructure <strong>to</strong> be the dominant local and regional gas and power<br />

provider<br />

• Replicate the success recorded in Greater Lagos natural gas<br />

distribution in other parts of Nigeria and West Africa<br />

• Make significant investments in infrastructure that assure reliable supply<br />

of natural gas e.g. high pressure transmission pipelines, gas processing<br />

facilities on the back of the Gas Master Plan<br />

• Expand horizon in independent power generation <strong>to</strong> captive industries<br />

in locations where we have gas infrastructure and E&P assets<br />

The subsidiaries include the following:<br />

? Gaslink Nigeria Limited<br />

? Akute Power Limited<br />

? East Horizon Gas Company Limited<br />

? Gaslink Ghana<br />

03<br />

04


Gaslink Nigeria Limited is an indigenous company established <strong>to</strong> promote<br />

the distribution and utilization of natural gas in Nigeria. The company, a<br />

subsidiary of <strong>Oando</strong> <strong>PLC</strong>, is operating a 20 year Gas Sale and Purchase<br />

Agreement (GSPA) with the Nigeria Gas Company. Gaslink is the pioneer,<br />

and one of the few companies in Nigeria involved in the piping and<br />

distribution of natural gas <strong>to</strong> industrial, residential and commercial<br />

consumers.<br />

Motivated by the vision <strong>to</strong> be the leading energy company in its chosen<br />

markets, Gaslink bundles various capabilities acquired from years of<br />

experience in delivery of natural gas <strong>to</strong> a broad spectrum of end users. This<br />

way, it offers complete energy solutions <strong>to</strong> its cus<strong>to</strong>mers with a commercially<br />

attractive bot<strong>to</strong>m-line.<br />

Having constructed a pipeline network from the Nigerian Gas Company<br />

(NGC) city gate <strong>to</strong> cover Ikeja and the Greater Lagos Area, Gaslink currently<br />

supplies natural gas through its 100km pipeline in Lagos <strong>to</strong> about 90<br />

industrial cus<strong>to</strong>mers. At present, our distribution network has the combined<br />

capacity <strong>to</strong> deliver 82mmscf/d (million standard cubic feet per day).<br />

Gaslink Nigeria Limited<br />

05<br />

06


Gaslink Distribution Network<br />

The 10km Ikeja IA pipeline was commissioned on the 9th of<br />

March 2001. Over 36 companies are connected.<br />

The 4.2km Ikeja IB pipeline was commissioned on the 25th Oct,<br />

2002.. 6 companies are connected<br />

The 84 km GLII gas distribution pipeline network designed <strong>to</strong><br />

deliver gas from City Gate <strong>to</strong> Ojota, Ilupeju, Ma<strong>to</strong>ri, Isolo, Amuwo<br />

Odofin, Iganmu and Apapa. was commissioned on the 27th May<br />

2004<br />

The 38km GLIII pipeline was commissioned in Q2 2009, and<br />

traverse from Ikeja <strong>to</strong> Apapa, Tin-Can Island and Amuwo-Odofin<br />

07<br />

08


East Horizon Gas Company (EHGC)<br />

Akute Power Limited<br />

The company is a special purpose vehicle set up <strong>to</strong> Develop, Finance, Construct and<br />

Operate a gas transmission pipeline linking the Calabar Cluster of Industries <strong>to</strong> the Nigerian<br />

Gas Company (NGC) grid in Akwa Ibom state. The $125m project, involves the construction<br />

of an 18inch by128 kilometer (km) gas pipeline through forest, swamps and built up areas.<br />

Upon completion, the project which has the <strong>to</strong>tal capacity of 100million standard cubic feet<br />

per day (mmscfd) will deliver 22 million standard cubic feet per day (mmscfd) of gas <strong>to</strong> its<br />

primary cus<strong>to</strong>mer, the United Cement Company of Nigeria Limited (UNICEM).<br />

UNICEM is a joint venture company set up by Flour Mills Nigeria, Orascom Industries and<br />

Holcim International <strong>to</strong> build a $350million Cement plant in Calabar with a production<br />

capacity of 2.5million metric <strong>to</strong>nnes per year. The primary fuel for the plant will be Natural<br />

Gas, supplied by EHGC and sourced from the Nigerian Gas Company (NGC). The Federal<br />

Government and the Nigeria National Petroleum Corporation (NNPC) have given their<br />

approval for the gas supply project on a Build Operate and Transfer (BOT) basis with NGC.<br />

The gas supply project includes construction of a gas supply line from the existing Obigbo-<br />

ALSCON pipeline at Ukanafun <strong>to</strong> the Cement Plant Site at Mfamosing.<br />

The construction project is been executed following international best practices of quality<br />

and safety standards and is expected <strong>to</strong> be completed during the 4th quarter of 2009.<br />

The project involves the development of an Independent Power Plant for Lagos<br />

Water Corporation (LWC) who is the captive off-taker of all the electric power<br />

generated.<br />

The objective of the LWC is <strong>to</strong> increase its existing capacity utilization by improving<br />

the supply of power <strong>to</strong> its two main water treatment plants (Head Works) at Iju and<br />

Adiyan in Lagos State. Both plants account for approximately 72% of the <strong>to</strong>tal<br />

capacity of LWC. The LWC predicts the improvement in power supply will help it<br />

improve its capacity utilization from currently 30% <strong>to</strong> 60% in the first year of the IPP<br />

being operational and improving <strong>to</strong> 85% in the third year.<br />

To support it in achieving this objective the LWC went through a competitive bid<br />

process for a 100% power supply solution and this culminated in <strong>Oando</strong> Gas and<br />

Power (“OGP”) a subsidiary of <strong>Oando</strong> <strong>PLC</strong> being selected. Akute Power Limited<br />

was set up <strong>to</strong> develop and operate the IPP.<br />

Akute Power Limited’s solution involves the development and operation of an<br />

integrated gas distribution (13km pipeline) and 12.15MW IPP with power generated<br />

by 4 x 3 MW GE Jenbacher containerized gas engines. The pipeline is connected <strong>to</strong><br />

existing natural gas infrastructure owned by the Nigerian Gas Company (“NGC”).<br />

The project is scheduled for completion in Q3 2009.<br />

09<br />

10

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