In the coming years more Nigerians especially those heavily reliant on petrol and diesel will be turning to gas and a local company, Gasco Marine who has predicted that gas is the future has made sure of the availability of the product.Gasco Marine MD, Bukola Badejo-Okusanya conducting Babatunde Fashola round their N2bn compressed gas plant in Abeokuta, Ogun state
The indigenous gas company recently launched a Compressed Natural Gas (CNG) plant in Abeokuta, Ogun state to meet the demand of consumers across Nigeria with a focus of promoting clean air.
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The plant, which has an installed capacity of 144,000 standard cubic metres per day, extends virtual pipeline for gas supply to emerging corporate organisations in an industrial hub in the South-West region of Nigeria.
At the lauch of the gas plant, former Minister of Power, Works and Housing, Mr Babatunde Fashola praised the company for looking into the future and providing solution to Nigerians who have had to rely on petrol and diesel.
Explaining the positives in the use of gas, the former Lagos governor said, “there is about 60 per cent cost saving in the deployment of gas as an alternative to inefficient and polluting diesel.”
Lauding the initiative by Gasco Marine and its focus on clean air, Mr. Fashola said, “We can continue to talk about gas flaring and carbon emissions and their negative impacts on the environment, but the situation will not change unless we do something about it,” he said.
He noted that companies like Gasco Marine is deepening the penetration of CNG and boosting investments in Nigeria.
While appreciating the rising figure of Foreign Direct Investments (FDI) in the country, the former minister specifically urged local businessmen to emulate the firm in investing in the business.
Fashola also emphasized the benefit of employment generation through the value chain of gas production, processing, storage and distribution.
The plant is backed by InfraCredit’s guarantee, after its parent company, Viathan Group successfully accessed the local debt capital markets for the first time in 2017, issuing a debut a 10-year N10bn corporate infrastructure bond, with part of the proceeds utilised to finance the construction of the CNG plant.
About 21 per cent of Viathan’s bond proceeds was dedicated to Gasco Marine and the bonds were largely subscribed by Nigerian pension funds (which accounted for 75 per cent of the bonds subscription), thus affirming the appetite and commitment of local pension funds to providing domestic credit to the private sector to finance long term, impactful infrastructure projects.
The successful financing of the plant from the debt capital markets also affirms InfraCredit and pension funds’ commitment to supporting new infrastructure that will provide access to cleaner and affordable energy supply for commercial, industrial, and residential customers.
This is in line with the federal government’s aspiration of reducing environmental pollution and conserving foreign exchange utilisation on imported fossil fuels.
According to Gasco Marine, the plant is expected to increase the utilisation of natural gas as feedstock to power plants and manufacturing plants by providing gas to areas without pipeline infrastructure (virtual pipeline).