Chinese firm wins $144m gas supply contract
By Taiwo Hassan
PAN Ocean Oil Corporation (POOC), a major upstream player in the nation's petroleum industry has awarded a contract worth $144 million to a Chinese firm - Lemna Energy Resources for the construction of a gas pipeline to supply gas to the on-going Independent Power Project (IPP) in Edo State.
According to POOC Managing Director, Dr. Festus Fadeyi, the commencement of gas supply to the IPPs is part of its commitment to fulfil the Federal Government's target to ensure availability of gas to the IPPs, come 2008.
Fadeyi disclosed that the contract awarded to the firm is for the commencement of the phase one project, adding that the project is expected to come onstream in 12 months time.
The managing director explained that the company would further be investing in the liquidified petroleum gas, as plans have been concluded to acquire gas plans for production.
Speaking at the contract signing ceremony, the POOC boss stated that the company is the first company to commence gas production in the nation's oil and gas sector, adding that the company faced some constraints, which hinder their gas supply.
Besides, with the award of the contract, Fadeyi said that this would help in revamping their gas facilities as they are poised to meet the Federal Government target of zero gas flaring in the country by 2008.
His words: "This gas project has been in the pipeline for 23 years precisely from 1984. Pan Ocean was the first company in Nigeria that pioneer gas project in the country some years back before Shell, Exxonmobil and Chevron, but we thank God that after some delays for many reasons, we have been able to finally seal the agreement that would resuscitate our gas project," Fadeyi said.
He commended the efforts of the former president Olusegun Obasanjo's administration for paying more attention to the power sector but noted that availability of gas to the power plant will accelerate improvement in power supply.
"We appreciate the effort of the current and the previous administration to make electricity available for everybody in the country by ensuring that all the IPP projects in the country are completed. So, this is one of the reasons, the government said that oil companies operating in the nation's oil and gas industry should build an IPP to increase the power generation in the country," he added.
