History and Future Strategy of Oando
Asset Overview
Gaslink Nigeria
Ltd
Akute Power
Plant
Lagos State
12.15 MW
>140 industrial customers
Lagos Water Corporation
Location
Lagos State
Pipeline / Plant
120 Km
Client
Alausa Pwer
Limited
chac
Central Horizon Gas Company
Oando
GNS
Alausa Power
Plant
Lagos State
10.4 MW
Lagos State Government
Secretariat & Adjoining
Facilities
Central Horion
Gas Company
Port Harcourt, Rivers State
5 Km (additional 8.5 Km
currently being developed)
Over 10 industrial
customers
Gas Network
Services
Lagos State
7500 scm/hr plant
Industrial customers
outside of the gas pipeline
grid
Operations
2000
Contract Structure
Contract Economics
Capital Expenditure
Incurred
Exclusive franchise for gas
distribution in greater Lagos
End User Gas price currently
at $7.34/mscf, with annual
inflation indexation.
Gaslink earns Operations &
Maintenance tariff and Capital
Recovery tariff
Customers subject to 90%
take or pay gass offtake
$150 MM
2010
10-year PPA, with successive
renewal option
Capacity charge is based on
17% ROA in US $
Pass-through of fuel and
Operations & Maintenance
cost
2013
10-year PPA
Capacity charge is based
on 22% ROA
Pass-through of fuel and
Operations & Maintenance
cost
$26 MM
$22 MM
2011
30-year exclusive franchise
End User Gas price
currently at $7.34/mscf, with
annual inflation indexation
35% Operations &
Maintenance earnings
Shell takes 65% for gas
supply and existing
infrastructure development
$10 MM
2011
Retail & B2B
End User Compressed
Natural Gas Price
comprises of:
- Input Gas Price
- Compression Charge
- Transportation Charge
- Storage Charge
$15 MM
30
30
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