Gastrain Project

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Gaslink Nigeria Limited

Gaslink Nigeria Limited, was a special purpose vehicle (SPV) created by the principals of Owel-Linkso Group to promote and develop infrastructure for natural gas distribution/utilization in industries and households in Nigeria.

In 1999 Unipetrol PLC (Now Oando) assigned its right to develop gas distribution infrastructure for the Greater Lagos Area to Gaslink (Nig) Limited. The franchise area spans across the seven industrial estates comprising Ikeja, Ojota, Ilupeju, Matori, Isolo, Amuwo-Odofin, Iganmu, Ijora, Apapa and the adjoining areas.

Under this agreement, Gaslink assumed responsibility for management and provision of technical leadership for the project. With this development, Gaslink became the Nigeria’s pioneer gas utilities company.

In developing the project, we adopted world class best practices in the execution of the project using multidisciplinary teams to manage the interface problems and negotiation of the Gas Sales and Purchase Agreement (GSPA) with Nigerian Gas Company (NGC), obtained all the statutory approvals and permits for the project.

From a position of market uncertainty and unwilling customers, resulting from a serious apathy generated in the market due to unfulfilled promises in the past, Gaslink embarked on aggressive market development strategies which enable her to persuade, negotiate and sign Gas Sales and Purchase agreement with the customers.

Giving the complexity of the project as epitomised by the large population and unplanned nature of the City, Gaslink negotiated and entered into a commercial agreement with Lagos State Government for the provision of Labour and direct repair of roads. This strategy of private–public partnership effectively created the necessary atmosphere for the timely resolution of other developmental challenges with regards to right of the way (ROW) and implementation of the mitigating strategy on the environmental impact Assessment report. As further assurance to the state and other stakeholders Gaslink entered into strategic alliance with Sui southern Gas Limited of Pakistan and Gulf Interstate of USA to provide oversight functions for the pipeline operations and design. This was also to ensure the quality assurance of the design and implementation process

With the limited confidence in the financial market on Gas distribution infrastructure due to lack of history of past performance in the industry, we resolved to implement the project in phases.

The strategy not only generated early cashflow but created the necessary confidence level in the financial market and the momentum for the realisation of the 82kilometer pipeline system. In the first phase, Gaslink raised the necessary funds required to deliver the first gas from individuals and First bank Nigeria PLC while the second phase of the project was financed through a loan syndication from five banks

The development of the greater Lagos gas distribution system was a technological first as it sets new standards and specification aimed at compensating for a national history of pipeline Vandalism and indiscriminate excavations of right of way. It also introduced at the onset a GSM data transmission system. This was soon followed with the installation of a fibre optic real time operations monitoring with remote control short down systems.

These innovations created the solid foundation for the company to thrive and maintain excellent health and safety (HSE) record in the complex and dynamic urban operation environment.