NNPCL-Sahara Joint Venture Expands Fleet Capacity to Meet Growing Energy Demands
A recent announcement from the Nigerian National Petroleum Company Limited (NNPCL) and Sahara Group’s joint venture, WAGL Energy Limited, reveals a significant expansion of its fleet capacity to over 160,000 cubic meters. This development strengthens WAGL Energy’s position as a leading supplier of Liquefied Petroleum Gas (LPG) in Africa.
According to a statement released on NNPCL’s official X (formerly Twitter) handle, the move aligns with the company’s vision to provide sustainable and affordable energy solutions for homes, businesses, and industries across the continent. WAGL Energy is driving Africa’s access to reliable and clean energy through its sustainable LPG supply, extending its impact across the continent and beyond.
The joint venture company, formed in 2013 between NNPCL and Oceanbed (a Sahara Group Company), plays a crucial role in NNPCL’s five-year $1 billion investment plan. This plan aims to accelerate the decade of gas and energy transition agenda, promoting a cleaner and more sustainable energy future for Africa.
WAGL Energy’s expansion is part of a broader effort to increase the use of gas in households, power generation, auto-gas, and industrial applications. The company aims to attain 5 million metric tonnes of LPG consumption by 2025 through its LPG Penetration Framework and LPG Expansion Plan.
In recent years, NNPCL and Sahara Group have made significant investments in their joint venture, including the delivery of two 23,000 cubic meters (CBM) LPG vessels, MT BARUMK and MT SAPET, in May 2022. This increased their joint venture investment to over $300 million, nearing their $1 billion gas infrastructure commitment by 2026.
The partnership has also secured a maintenance agreement for the Escravos Crude Oil Terminal Facility in Delta State, Nigeria. Nigerian Pipelines and Storage Company Limited (NPSC), a downstream subsidiary of NNPCL, signed the agreement with WAGL Energy for the provision of Operation and Maintenance (O and M) Services.
As Africa continues to grapple with energy challenges, the expansion of WAGL Energy’s fleet capacity is a significant step towards meeting the growing demand for clean and sustainable energy solutions. With its commitment to providing affordable and reliable energy, the NNPCL-Sahara joint venture is poised to play a vital role in shaping Africa’s energy future.
