Why Oando is investing in the power sector


Oando Gas and Power (OGP) realises the correlation between electricity and the development of any society, and it is this reason that made it go into independent power production (IPP) with natural gas to close the supply gap, the firm has explained in a statement.

The firm lamented that despite the abundance of sources of electricity generation including natural gas, coal, water resources, high insulation, fissionable materials, biomass, among others, power situation in Nigeria remains inadequate and unreliable.

According to the firm, in 2001, a report by the United Nations Developmental Programme (UNDP) showed that about 60 per cent of Nigerians have no access to electric power supply, adding that currently, peak energy demand for the country is estimated at 10,000 megawatts (MW), with total generation put at 6,000MW, while actual daily generation oscilates between 2,000Mw and 3,500Mw.

“Over the past two decades, Nigeria’s population has increased to about 160 million, while power generation capacity has stagnated.

“These factors, combined with the poor maintenance of existing power generation stations, inadequate gas supply, hydrological variations, vandalisation of gas supply, transmission and distribution facilities, led to loss of large quantum of energy,” the firm added in the statement.

State, the State House of Assembly, and all state ministries and adjoining campuses.

The Alausa IPP is managed by Alausa Power Limited (APP), a Special Purpose Vehicle (SPV) established for the development of captive power solutions with a primary focus on the construction of dedicated power generation plants for the Lagos State Government. Remarkably, it is also the second successful IPP for OGP following the Akute Power Limited’s 12.15MW power plant which was commissioned to improve power supply to the Lagos Water Corporation.

Alausa IPP provides a consistent, viable, and cost-friendly alternative to the current erratic power supply to the secretariat provided by a combination of the Power Holding Company of Nigeria, and to a larger extent self-generation via diesel engines. The mere fact that the Alausa IPP is a natural gas fired plant will help to significantly reduce the carbon pollution that emanates from the 70 plus diesel generators that are currently in use, and will lead to a drastic reduction in the LASG Secretariat’s fuel costs by over 70 per cent. Undoubtedly, the presence of consistent and reliable power supply to the secretariat will increase the functionality and efficacy of its employees within the secretariat, which are paramount to the progression of the state.

From 1970 to the present, carbon emissions increased by 30 per cent in developed countries, while increasing 80 per cent in developing countries. Researchers believe that using combinations of resources different from those used in the past to produce electricity—and integrating them in a cost-effective way—could ease the health, economic, and environmental effects of an increase in demand for electricity services.

It is estimated that the entire Alausa secretariat requires an average of 4.0 megawatts; 5.5MW during peak periods, and about 0.5MW during off peak periods. The disconnection of the secretariat complex from the PHCN grid should make improved electricity available to many residents in Lagos State, thus enhancing security for home owners and road users at night. In addition, the project is expected to provide various classes of employment, from local labour to specialized experienced services.

In pursuit of its aspiration to build the largest gas grid in sub-Saharan Africa, OGP’s East Horizon Gas Company (EHGC), another Special Purpose Vehicle in Akwa Ibom and Cross River States, completed an inter-state 128 km gas pipeline project in the first quarter of 2011. Presently, the grid delivers gas to United Cement Company (UNICEM) in Calabar, as well as other consumers in the Cross River-Akwa Ibom industrial cluster.

Oando Gas and Power is also set to deploy Compressed Natural Gas (CNG) from its Lagos-based mother station, thus guaranteeing access to the benefits of natural gas for small scale and stranded consumers beyond its pipeline coverage.


Information from The Nation was used in this report.



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