June 9, 2014 - African Capital Alliance (ACA) today announced its investment in Gas Train Limited, a gas infrastructure development platform operating in Nigeria.
Gas Train was set up by the Owel-Linkso Group, a project development firm which also provides services to the oil and gas, power and construction industries in Nigeria. It has an active pipeline of over 800 mmscf/d of associated gas supply processing projects, and plans to be a major facilitator of the gas-to-industry and gas-to-power sectors in Nigeria.
Its core mandate is to build a portfolio of core infrastructure to enable the internal utilization of Nigeria's abundant gas resources. With ACA's investment, it has successfully acquired a 30 million scf per day gas processing plant (the Egbaoma plant) located in the gas-rich Niger Delta region. It plans to refurbish, optimize and ultimately expand the plant. When completed, the plant will process currently flared associated gas from the Asuokpu/Umutu Field which is estimated to contain 1P gas reserves of over 150 bcf. The processed output from the plant will be: Dry gas (for power generation), LPG (used primarily as cooking gas), Propane (for power generation and absorption chillers) and Natural Gas Liquids (blended with Crude Oil).
The Egbaoma project offers an investment opportunity to save the environment while also targeting attractive returns. The gas midstream space is also central to ACA's overall power and oil & gas strategy and ACA's investment in Gas Train will help grow Nigeria's power and industrial sectors.
Speaking on the investment, Charles Osezua, founder and Chairman of the Owel-Linkso Group said: "The acquisition of the Egbaoma plant is a first step and is core to our strategy as a developer, investor and operator of gas infrastructure projects in Nigeria. We are excited to partner with African Capital Alliance and look forward to achieving the objectives of Gas Train for the benefit of our organizations and indeed for the Nation." This sentiment was in turn echoed by Cyril Odu, Partner and Head of Energy at ACA, who added: "We are pleased to partner with the Owel-Linkso Group, a firm with a strong track record of project development success. We look forward to a long and successful relationship."
ACA is currently investing out of its third fund (CAPE III), a $400 million private equity fund.
For more, see here.
Source: African Capital Alliance.