Transit Gas Nigeria Limited, a subsidiary of Axxela Limited, says it has, in partnership with Nigerian Gas Marketing Company Limited, successfully inaugurated another segment of the Sagamu Gas Distribution Zone, a 12km natural gas pipeline connecting Coleman Cables to Celplas Industries Park.
The pipeline, with a capacity of 25 million standard cubic feet per day, runs from Ibefun to Celplas Industries Free Zone Enterprise along Sagamu-Benin Express Way, Sagamu, Ogun State, according to a statement.
Axxela’s Chief Executive Officer, Bolaji Osunsanya, said, “This commissioning reinforces our commitment to deliver innovative solutions that create sustainable and efficient energy utilisation for the benefit of our customers.
“We understand the important role that industrialisation plays in the economic development of our nation, and we will continue to position as the energy partner of choice by providing the natural gas advantage to the different sectors.”
The company described the Sagamu Gas Distribution Zone as a growing industrial cluster delivering natural gas to a wide range of Axxela’s customers within the region.
The pipeline network, according to the statement, currently serves industrial customers like Rite Foods Limited, Apple & Pears Limited, Emzor Pharmaceutical Industries Limited, West Africa Soy Industries Limited and Coleman Technical Industries Limited.
The Managing Director, Celplas Industries Nigeria Limited, Prakash Hathiramani, was quoted as saying, “As a company, achieving effective cost savings is a major part of our operational goals, and we believe the switch to natural gas will significantly accelerate our journey to energy cost efficiency.
“In our clime, it is common knowledge that power constitutes one of the largest cost centres for many businesses; hence, with the numerous advantages of natural gas, this is a step in the right direction.”
According to the statement, the Sagamu Gas Distribution Zone is a joint venture between NGMC, a subsidiary of Nigeria National Petroleum Corporation, and Transit Gas.
It said this collaboration would continue to expand and create natural gas distribution networks in Nigeria, leveraging Axxela’s industry expertise and further increasing natural gas utilisation across the country.
