OTI Greentech AG to expand activities into Nigerian gas market

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OTI Greentech AG (WKN A0HNE8), an international environmental engineering and technology services group listed on the Düsseldorf Stock Exchange, today announced its intention to expand its activities in the Nigerian LNG market by having VTT Maritime West Africa develop a technical concept for a virtual gas pipeline. In addition to the extraction of gas, this project comprises the logistical solution for transport and supply to deliver natural gas to potential customers from the private and public sector. The aim pursued by OTI Greentech with this project is to position itself as a competent partner for both the Nigerian government and private enterprises.

Nigerian natural gas is of key importance for the African and international markets because Nigeria holds the world’s ninth-largest gas reserves with significant potential for developing the market and supplying its own population with electricity. Since Nigeria’s electricity supply from the grid is currently insufficient and unstable, the country is largely dependent on producing electricity with diesel-powered generators. The Nigerian government is currently pushing the use of natural gas as a cost-efficient and more environmentally friendly option for the supply of electricity.

Nigeria has set itself the goal of boosting output to 20,000 megawatts by 2020, which is why major investments are set to be made in this sector. Neighbouring countries such as Benin also plan to expand their electricity production over the next years using gas-fired power plants because they have a more favourable carbon footprint than other fossil-fuel based sources of energy.

Drawing on the support of consultants, VTT Maritime West Africa is currently in the planning and preparatory stage of this project. Planning comprises preparing a detailed investment plan including a feasibility study and reviewing the project’s cost-effectiveness. Assuming that financing of the project is secured and the project plan will be implemented successfully, the construction of the virtual pipeline could by completed in the second half of 2018.

Johnny Christiansen, OTI Greentech’s CEO, comments: “The Federal Republic of Nigeria intends to make substantial investments into its infrastructure. We want to utilise our expertise and our local subsidiary VTT Maritime West Africa to benefit considerably from this development. Our technical concept surrounding liquefied natural gas positions us as a prime point of contact for practical technological solutions.”

 

Source: Press Release