Us Agency Partners Oando Gas & Power On Infrastructure Development

WEDNESDAY, 07 DECEMBER 2011 09:23 OLUSOLA BELLO ENERGY EDITOR   

Determined to boost  economic  activities in the south- western part of the country,  Oando Gas and Power Limited (OG&P),  an indigenous natural gas distribution and captive power solutions company, and a subsidiary of Oando PLC, has entered into agreement with the United States Trade and Development Agency (USTDA), to jointly fund a feasibility study toward the development of an interstate natural gas transportation pipeline from the Excravos-Lagos Pipeline System to other South West states.

The action will spur other economic activities that are capable of creating more jobs and could also lead power generation in some of the states. The study will evaluate technical and economic considerations for the development of a natural gas pipeline originating in Sagamu in Ogun State and passing throughIbadan ( Oyo State ) and Ilorin ( Kwara State ) before terminating at Jebba, Kwara State.

The pipeline will also have extensions to the adjacent states of Osun and Ekiti. The supply of natural gas to the South-West States will provide an opportunity for industries in the region to access a cheaper, reliable and cleaner fuel that will boost power generation and economic growth through increased industrialisation. This development is in line with the current drive by the Nigerian National Petroleum Corporation (NNPC) to boost domestic gas supply under the Nigerian Gas Master Plan.

The agreement was signed on behalf of Oando Gas and Power by Bolaji Osunsanya, the company’s chief executive officer, while the United States Consular General toNigeria, John Stafford, signed for the USTDA, at an official signing ceremony hosted by the US Consular General in Lagos, recently.

Commenting on the partnership, Osunsanya, stated: “The USTDA assistance provides the much desired boost to our aspiration to develop the Nigerian Gas Grid and in so doing, support the Federal Government in achieving its gas revolution agenda.”  Commenting further, he said: “Oando Gas and Power continues to seek opportunities to expand our gas infrastructure to reach industries through our pipeline distribution grid and our Compressed Natural Gas (CNG) stations.”

Also commenting, Stafford stated: “The US Trade and Development Agency (USTDA) is pleased to partner Oando Gas and Power Limited on this important project, which will be of mutual economic benefit to the United States and Nigeria, and will serve to facilitate trade and strengthen our countries’ economic ties.”

http://www.businessdayonline.com/NG/index.php/gas/30595-us-agency-partners-oando-gas-a-power-on-infrastructure-development-

Amazing if this actually happens. Sounds too good to be true, almost. . .

Very good, that means we can threaten the SW from Wafi if they don't supply us nice babes with jiggly bakassi!

Hehe

My hope is that natural gas will somehow be mostly or entirely "resource controlled."

If the states which produce gas fully control the revenue from it, then there is no incentive for any gas disruptions.

Meaning that states which seek to industrialize (in particular, the SW states) can achieve their goal.

The most interesting thing about natural gas to me is not the money you make from selling it, but the stuff you can make/manufacture once you buy it. . .

I also hope that we protect ourselves a bit by exploring alternate fuel sources, so we aren't fully dependent on ND gas. Kogi State seems to have a ton of coal, for example.

All the chips are neatly falling into their rightful places in the SW.

Wait a minit am i dreaming,.oops is real, bt d us should no dat they need us much as we nid them,

This is a better type of relationship one that has the potentials for mutual economic benefits between the south-south and west and not the exploitative, parastic relationships we have now. This is the way Nigeria should work - private sector driven on the one hand and resource control on the other then fuel subsidy will not be an issue. Private selling to private does not bring resentment. No one protests the cost of beans or onions and expects government's subsidy or compares it with those sold by Tesco or ASDA.

The good thing about these types of arrangements is that they work even in a political state of true federalism. Good move.

no be free oh!

The complete MOU is available on qikileak

There is a clause that read : " Furthermore to this amendment, in pursuance to the position of the UNITED STATES OF AMERICA, it shall be binding on the GOVERNMENT OF LAGOS STATE and every other benefiting STATE to ensure that the rights of GA.YS are protected within their jurisdiction and a periodic documented report availed on quaterly basis"

Kindly note though that this is a "feasibility study". It doesn't say that it will actually be done. So don't go jumping up and down yet .

this is just to study, we don't know the outcome, as you all know paper work is one thing proactive is another thing. hope the think work for the benefit of all.

I personally think Oando is just a glorified scam, all its profits and posing is all paid for by fuel subsidies.