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Gaslink Nigeria Limited

Outline

Who we are
Background
Definition of the Greater Lagos Industrial Area (GLIA)
Steps in GLIA development
Challenges

Who we are
Gaslink is a member of the Oando group as shown below

Fully Integrated Energy Solution Provider

Downstream
Commercial &
Retail supply of
petroleum
products

Oando Supply
& Trading
Petroleum
products
supply &
trading

Oando Pet.
Development
Company
Greenfield
development
of marginal
fields

Oando
Energy
Services

Oando Gas &


Power

Provides support
services to the
upstream sector

Oando
Refinery
Refining of
petroleum products

Oando
Power

Gaslink
Nigeria
g

Power
generation &
distribution

Gas distribution
Exclusive
distribution
franchise for
the greater
Lagos area
Supplies over
70 industrial
companies

Background
History:
1998: Oando won the right to distribute natural gas in the Greater Lagos Industrial Area through a
competitive bidding.
1999: Oando signed the Natural Gas Sales and Purchase Agreement with NGC
1999:
1999 Gaslink
G li k was assigned
i d Oandos
O d exclusive
l i rights,
i h benefits
b fi andd obligation
bli i under
d the
h Natural
N
l Gas
G
sales & Purchase Agreement with NGC. Gaslink then became a Special Purpose Vehicle for Oandos
investment in the downstream natural gas segment.
2000: Gaslink signed a supplemental agreement with NGC
2000: Gaslink delivers first gas
2001: Gaslink commissions first network.
2001: Oando increases its stake in Gaslink.

Background contd.
Vision:

To be the leading and most innovative energy company in our chosen markets

Mission:

To harness energy resources for the benefit of all stakeholders

Definition of GLIA
In 1995, Government, through the Nigerian Gas Company (NGC) divided the areas covered by gas
transmission lines into 5 economic zones. Greater Lagos Industrial Area (GLIA) is one of them and
it comprises of

Ikeja,
Maryland
Ojota,
Agege
Anthony,
Anthony
Matori
Apakun
Oshodi,
Oshodi
Mile 2,
Iganmu,
Ijora,
Ijora
Apapa and environ

Steps in GLIA Development


Our project was phased into 3; Ikeja 1A, Ikeja 1B, and Greater Lagos II (GL II).
Ikeja 1A
This is a 10 km distribution pipeline network from NGCs City Gate at Ikeja to Oba Akran through Acme
Road, Lateef Jakande and adjoining streets commissioned by former Vice President, Alhaji Atiku Abubakar
on the 9th of March 2001. This phase has the capacity to deliver about 15 million standard cubic feet of
gas per day (mmscf/d).
However, owing to anticipated increase in demand as a result of new customers and expansion of existing
capacity by some firms, Gaslink embarked upon expansion of this phase by constructing additional 1.2 km
pipeline network.
Today over 35 companies are connected on this phase, these include: Cadbury, Dunlop, Guinness,
Reliance Textiles,, Wempco,
p , Wamco,, Sankyo
y Steels etc.

Steps in GLIA Development

Steps in GLIA Development


Ikeja 1B
Involves the construction of about 4.2 km from City Gate to Ikosi Road, Oregun through Mobolaji Johnson
Road. This phase was commissioned on the 25th Oct, 2002, by His Excellency, the Gorvernor of Lagos
State, Senator Ahmed Bola Tinubu to deliver gas to companies in Alausa and Oregun Industrial Area.
Ikeja IB, has the capacity to deliver over 5mmscf/d of gas 3 companies are currently on gas in this
area. These are Seven-Up PLC, Epesok paper mill, and Green Eagles; and a provision to serve Lagos
State Secretariat.

Steps in GLIA Development


GL II
This is an 84 km gas distribution pipeline network designed to deliver gas from City Gate to Ojota,
Ilupeju, Matori, Isolo, Amuwo Odofin, Iganmu and Apapa.
Ultimately over 125 consumers will be supplied with gas in this area with a gas of 65mmscf/d.
This project phase is commissioned in phases but the entire line was commissioned in December 2004.
A list of some GL II customers include Nigeria Breweries, Flour Mills, Dangote Sugar, Atlantic Textiles
Mills, Bhojraj, Nigerian Synthetic Fibre, Nigerian Weaving and Processing, Enpee Factories A and B, and
Cotsyn Limited, BOC, etc. over 25 customers are connected in these areas.

Steps in GLIA Development

Steps in GLIA Development


Phase III

This phase of expansion is aimed at increasing the volume and pressure of Gas supplied to the
Apapa area.

This is to increase the capacity delivered by the Greater Lagos II pipeline (GL II)
II).
The present expansion phase involves three distinct segments.

Phase IIIA Linking the Ikeja 1B pipeline with the GL II to transfer excess volumes from the
Ikeja 1B pipeline.

Phase IIIB Increasing the capacity to supply volumes to Apapa by laying new pipeline to
increase the capacity of GL II.

Steps in GLIA Development


Phase IIIC

1.

Connecting the new pipelines with the starting point of Gaslinks distribution network.
Gas to the new pipeline will be supplied from this point and the connection with Ikeja 1B in segment

Segment 3 also entails connecting the Amuwo-Odofin and Apapa ends of GL II to supply gas to
Tincan Island.

The present expansion phase is expected to increase Gaslinks total supply to 2,438,736scm/d or
86.11 mmscf/d upon completion.

Potential customers have indicated their willingness to off-take the additional volumes the expansion
will generate.

Challenges
The following challenges were encountered while developing the pipeline network:

The market

Host community

E i i ddesign
Engineering
i andd construction
i

Finance

Safety

Operational practice

Maintenance

Challenges
Market
Sizeable Market: About 150 Potential Consumers Identified
- only 5 signed &
- 7 Letters of Intent issued

Skepticism from the consumers


Consumers wanted to know where we have done it before
Apprehension about our technical capability/safety of infrastructure and product.
Limited knowledge base in market Area
Internal Piping
Equipment Conversion
Financial constraints

Challenges
Lagos State Govt. & Host Community
Community problems relating to multiple claims
Safety/Education
Traffic Management
Road cut permits and reinstatement charges by Lagos State Govt.
Unidentified underground facilities
Gaslink action taken
Sought the Support of Lagos State Government
Established Joint Task Force on Community relations
Information and Public Enlightenment
Joint Traffic Management Strategy
Federal Road Safety
Gaslink Emergency Response Plan
Local Government Joint Seminars
Security Patrol

Challenges
Finance

Confidence of financial sector

Bank require collaterals and guarantees

Could not pledge the assets being developed

Absence of long term cheap source of funds

Meeting the Requirement

Shareholders equity
Shareholders

Equity/Loan/Retained Profit

Challenges
Engineering design and construction
Absence of local technical skills/materials for the design & construction of a metropolitan gas
network.
Lack of records of existing underground facilities i.e. NITEL & NEPA cables, abandoned drains
etc.
Multi level interruption by various tiers of government; federal, state ministries and local
government.
Statutory
Permit to Surveyy (
(PTS)
)
Oil Pipeline License application (OPL)
Public hearing
Environmental Impact Assignment (E.I.A)
Right
Ri h off Way
W (ROW) acquisition
i ii

Challenges
Safety

3 layer coating
line break valves
automatic controls (minimal human interface)
slam shut valves
road crossing protective design
fire detection and fighting system
odorized gas
system design pressure much higher than operating pressure
system tested to withstand 150% of the operating pressure
safety management during construction

Challenges
Operational Practice

As part of our operational practices a double run meter is installed in our customers premise.
The system is also designed with a 100% redundancy, this is done in order to achieve
continuous supply of gas incase of any emergency.
Generators are installed in our AGI to ensure uninterrupted
p ppower supply.
pp y
The city gate station operated by NGC also has a redundancy built into their system.
Two
T generators
t andd UPS tto ensure uninterrupted
it
t d power supplyl iis also
l iinstalled
t ll d att th
the city
it gate.
t
Also installed at the city gate are scrubbers, heat exchangers and separators to ensure that gas
maintain correct specification.

Challenges
Maintenance

Installation of Supervisory Control and Data Acquisition (SCADA) on our system for effective
monitoring and maintenance of our pipeline.

Pipeline route is patrolled on a daily basis to avoid encroachment on our pipeline.

Routine check is carried on all our PRMS in consumer premises.

Preventive maintenance is carried on our PRMS

Our engineers are certified by Original equipment manufacturer on the operations of the
equipment.

Conclusion

The activities have attracted new entrants into the market to take advantage of the available
opportunities.

Provided industries with cheaper and better fuel

Increased the number of fuels in the countrys energy basket

Contributed to the monetized our wasting carbon resource

Developed internal technical and commercial capabilities for the business

Thank you