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 January 25, 2016 - 6:26 PM EST
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Powergas to Drive Alternate Power Solution

POWERGAS Africa Ltd., is set to change the fortunes of manufacturing firms throughout sub-Saharan Africa, by supplying natural gas as a source of power to areas not connected by pipelines.

To this end, the company's "Gas on Wheels" service is providing firms with a real alternative to expensive diesel fuel, offering the region's manufacturing sector a new lease of life.

Speaking on the challenges faced by manufacturing companies, the Chief Executive Officer, Powergas Africa, Mr. Deepak Khilnani, said: "The need for the adoption of gas to power solutions by manufacturers in

Nigeria
is inevitable, because energy cost 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 argued that there is a gap between the end-users and gas producers due to undeveloped gas pipeline infrastructure, which Powergas is dedicated to fill in with its novel "Virtual Gas Pipeline" solution through 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 view of fuel shortages.

Impact on environment

According to him, 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 remained one of the most reliable source of fuel for power generation for industries that require constant power for their production processes, adding that eradicating the negative impacts of diesel on the environment and public health, is also cost effective. He noted that many companies have shut down because of expensive energy costs, adding that when a company adopts CNG, it saves money, cost becomes lower, it makes more profit, pays more tax, employs more people and pays 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.

The Powergas boss also applauded Federal Government's recent efforts and policy implementation in the power and energy sector, especially the giant strides that have been taken in the gas-to-power sector. He noted that the future of a resource-rich, high population and power-deficit economy like

Nigeria
is in the adoption of natural gas as a source of fuel for power generation.

He added that this will decrease the pressure on the economy from dollar-based fuel imports, and position

Nigeria
as a leader in
Africa
.

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Source: Equities.com News (January 25, 2016 - 6:26 PM EST)

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