Nigeria's Oando plans $350 mln gas processing plant

Thu Nov 26, 2015 11:58am EST
 
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By Chijioke Ohuocha

LAGOS Nov 26 (Reuters) - Nigeria's Oando plans to build a gas plant for up to $350 million as it focuses on integrating gas production with its supply business, the head of the gas and power unit said on Thursday.

Bolaji Osunsanya, Managing Director of Oando Gas and Power said the plant, with a capacity to process 300 million standard cubit feet a day (scfd), will take 24 months to complete and cost $300 million to $350 million.

He said Nigeria had room to ramp up gas plants as current capacity was around 2 billion scfd, adding that its project was at the development stage to be launched in the first quarter.

London-listed Nigerian firm Seplat is also boosting gas capacity. It plans to increase gross output from around 120 million to 400 million scfd by 2017, as demand grows.

"We have done transport in the past, we are getting into (gas) processing right now," Osunsanya told Reuters in an interview. "We are working ourselves up the chain."

Oando's gas and power unit reported a net income of $19 million for the nine months to September, down from $22 million the previous year.

Lagos-listed parent Oando, with interests in oil exploration, terminals and oil trading, has said it was seeking approvals to sell its gas and power investment to cut debt and raise up to 80 billion naira from shareholders.

Two years ago, Africa's biggest economy broke up its monopoly on power generation and distribution by privatising the sector, hoping to attract foreign investors.   Continued...