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 volume 8, issue #2 - Friday, January 24, 2003

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Gaslink Nigeria raises gas distribution

07-01-03 A company in the front line of gas utilization in the downstream sector, Gaslink Nigeria, has disclosed that customers receiving natural gas from its facilities have increased from 10 to 18 in the last one year, with a consumption of 5.6 mm cfpd. When the company had only 10 customers receiving natural gas from the company's facilities, average consumption stood at 3 mm cfpd.
The company has also set machinery in motion for the supply of natural gas to Benin city, the Edo State capital, where companies like Guinness, Coca Cola, Bendel Breweries among others, also have indicated their interest. Mike Honren Owhoko, the company's public relations officer, stated that the company's managing director and CEO, Charles Osezua made the disclosure while speaking at the annual Customer Forum held in Lagos recently.

The managing director said that the number of companies that have expressed commitment for the use of natural gas, through the signing of a gas sales and purchase agreement (GSPA), has alsoincreased from 21 to 35 within the last one year. Mr Osezua said natural gas is no longer fuel of the future, but fuel of the moment, pointing out that the response of existing customers to the use of natural gas and their desire to increase their take-off-through expansion programmes, is encouraging.
He said: " last year we advised companies on areas where they could take advantage of gas utilization, particularly in the areas of power, vehicles and commercial kitchen. Today we are proud to say that some companies have heeded this advice and have commenced the process of widening their consumption base." The managing director disclosed that companies like Prestige Fibre Nigeria and Cook 'N' Lite Nigeria are now running their generators on gas, while new development by major companies are equally underway.

Currently, Dunlop Nigeria, Cadbury Nigeria and Guinness Nigeria are trying to instal CHP tri-generators and generators respectively for their operations. The managing director advised companies whosehousing estates are located near Gaslink's plants to take advantage of gas in their premises, in emulation of what Wempco Group of companies is doing at the moment.
He reiterated that natural gas utilization is a tested and proven way of improving the economic performance of a company, while expressing appreciation for customers who had shared experiences and those who have been kind enough to talk about the benefits of natural gas. Also speaking, the managing director of Nigerian Gas Company (NGC), Emmanuel Olukoga said that natural gas supply runs through out the year without any form of interruption, adding that NGC is committed to remaining a continued source of gas for various oil producing companies.

The NGC helmsman who was represented by Mr Francis Akintimehin, the manager, commercial, advised that the price of gas should be made competitive and adequate enough to support the investment, but not discourage end-users. On his part, Gaslink's chairman, Adewale Tinubu promised to strengthen the existing cordial relationship between the company and its customers through consistent delivery of quality services. While giving the assurance that the customer forum would be sustained, he said that the customers constitute the market and the market constitute the future of the company.
The engineering services manager of Guinness Nigeria, Y.B. Babatunde, also disclosed that there has been an improvement in the economic performance of his company since it hooked up to natural gas. " Since March this year(last year) when Guinness decided to use gas for its boilers, we have never had any cause to go back to diesel or Low Pour Fuel Oil (LPFO)," Mr Babatunde stated.

Source: Vanguard/All Africa Global Media



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