Viathan Group has recently completed the construction of a Compressed Natural Gas, (CNG) plant operated by GasCo Marine, a member of the Viathan Group located in Oke-Sokori, Abeokuta, Ogun State.
The plant which has an installed capacity of 144,000 SCM per day, extends virtual pipeline for gas supply to emerging corporates in one of the fast-growing industrial hubs in the south-western region, with the ultimate objective of enhancing productivity and easing the cost of doing business for medium scale enterprises in the real sector.
This Day Live reported that the group backed by InfraCredit’s guarantee successfully accessed the local debt capital markets for the first time in 2017, issuing a debut a 10 year N10 billion corporate infrastructure bond, with part of the proceeds utilized to finance the construction of the CNG plant.
According to a statement, “GasCo Marine to which about 21 per cent of Viathan’s bond proceeds were dedicated has been able to backwards integrate. Also, the bonds were largely subscribed by Nigerian pension funds (which accounted for 75 per cent of the bonds subscription), thus affirming the appetite and commitment of local pension funds to providing domestic credit to the private sector to finance long term, impactful infrastructure projects.
The group also mentioned in the statement saying, “the successful financing of this plant from the debt capital markets also affirms InfraCredit and pension funds’ commitment to supporting new infrastructure that will provide access to cleaner and affordable energy supply for commercial, industrials, and households, in line with Nigerian government’s aspiration of reducing environmental pollution and conserving foreign exchange utilisation on imported fossil fuels.
Also, the plant is expected to increase the utilisation of natural gas as feedstock to power plants and manufacturing plants by providing gas to areas without pipeline infrastructure (virtual pipeline). It is expected to help reduce gas flaring and Green House Gas (GHG) emissions hence promoting environmental sustainability as companies and vehicles switch from expensive diesel to cleaner and affordable gas.
GasCo targets that up to 1 million vehicles and trucks would switch to natural gas from diesel and petrol thus increasing its market share, whilst the mother station will account for 15 per cent of established plant capacity in the Southern region, the statement also explained.
Interestingly, the project has led to the creation of direct and indirect employment as the construction of the CNG mother station led to the creation of one 137 new jobs.