IN order to get natural gas, a major source of power, to areas not connected by pipeline, Powergas Africa Ltd., is set to change the fortunes of manufacturing firms throughout sub-Saharan Africa. The company’s “Gas on Wheels” service is providing firms with a real alternative to dirty and expensive diesel fuel, offering the region’s manufacturing sector a new lease of life.
Speaking on the challenges faced by most manufacturing companies in Nigeria, Deepak Khilnani, chief executive officer, Powergas Africa, said that “the need for the adoption of gas to power solutions by manufacturers in Nigeria is inevitable, because energy costs is a major challenge faced by most manufacturing companies today. This has become imperative, more so, in these tough times where organisations are concentrating on cost optimisation, import substitutions and energy security, and Nigeria’s domestic gas reserves tick these three boxes perfectly.”
Khilnani noted the gap between the end-users and gas producers, because of developing gas pipeline infrastructure, and promised that the Powergas would work hard to fill in with its novel “virtual gas pipeline” solution in the form of compressed natural gas, CNG, or liquefied natural gas, LNG. “This not only optimises production and increases efficiency for the manufacturers, but also ensures reliability and adequate supply, especially, in today’s times when “fuel shortage” is not uncommon,” he said.
According to Khilnani, most companies depend on diesel generators for their power requirements and this comes at a very high cost coupled with its impact on environment and public health. He stressed that CNG/LNG remain one of the most reliable source of fuel for power generation for industries that require constant power for their production & processes, and in addition, to eradicate the above negative impacts of diesel on environment and public health, saying it was also cost effective and “pilferage-proof.”
“Many companies have shut down because of expensive energy cost, but when a company adopts CNG, they save money, cost becomes low, they make more profit, pay more tax, employ more people and pay their salaries promptly. It is a fact that the cost of power generation from gas is far less than half the cost of diesel-generated power, and it will provide constant power supply as well as have a positive impact on the environment. This is why – Powergas Africa is -promoting clean gas energy as an alternate source of power generation,” he said.
Khilnani also applauded the recent efforts & policy implementation of the federal government of Nigeria in the power and energy sector, especially the giant strides that have been taken in the gas-to-power sector. He emphasized that the future of a resource-rich, high populous and power-deficit economy like Nigeria remains in the adoption of domestic natural gas as a source of fuel for power generation. This will decrease the pressure on the economy from Dollar-based Fuel Imports, and moreover will position Nigeria as a leader in Africa and set example for other developing nations to cut down its carbon emissions.
Khilnani reiterated the company’s deep commitment to ethical standards and professionalism, which has brought Powergas Africa naturally into the clean and renewable energy segment. The goal of Powergas is to ensure that as many industries as possible adopt CNG as a major source of power generation and ultimately drive increased production activities in the economy.
— Jan 25, 2016 @ 15:30 GMT