Draft:Axxela_Limited
Axxela—pronounced Ak-sela—is a Nigerian energy company headquartered in Victoria Island, Lagos, Nigeria which focuses on the distribution of natural gas to industrial and commercial customers, power development, natural gas processing, and transmission. Axxela is a designated natural gas shipper on the West African Gas Pipeline (WAGP)[1] with over 678 kilometers of regional pipeline system utilized.[2]
Axxela provides energy solutions through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.
| ISIN | 🆔 |
|---|---|
| Industry | Energy |
| Founded 📆 | 2000 |
| Founder 👔 | |
| Headquarters 🏙️ | Lagos, Nigeria |
Area served 🗺️ | West Africa |
Key people | Bolaji Osunsanya (CEO) |
| Products 📟 | Gas & Power Infrastructure |
| Members | |
Number of employees | |
| Parent | Helios Investment Partners |
| 🌐 Website | www.axxelagroup.com |
| 📇 Address | |
| 📞 telephone | |
History[edit]
2000
In 2000, the company, then known as Gaslink, commenced the foundation of the 10km Greater Lagos Gas Pipeline (Phase 1A), pioneering private sector piping and distribution of natural gas to residential, commercial and industrial consumers.
2002
In 2002, the company began the Greater Lagos Gas Pipeline (Phase 1B) with a total length of 14km and the second phase of the project was completed in 2005 spanning 84km in length.
2008
The Greater Lagos Gas Pipeline project was finalized with the completion of the last phase, by laying a 113km gas pipeline.
2010
In 2010, the company commissioned the development of Akute Power Limited (APL), a gas-to-power (GTP) project which has now been divested.[3] Akute Independent Power Plant is an independent power generating plant with a capacity of 12.15 megawatts of electricity. The power plant supplies constant and cost-effective electricity to the Lagos Water Corporation[4], Akute.
2011
In 2011, Axxela established East Horizon Gas Company (EHGC), an energy infrastructure asset in South-Eastern Nigeria. The facility operates the 128km East Horizon gas pipeline through Akwa Ibom State and Cross River State. EHGC was, however, divested in 2013.[5] The company also established of Central Horizon Gas Company (CHGC) as a special purpose vehicle (SPV) in 2011 for the distribution of natural gas in the Greater Port Harcourt area, Rivers State, South-South of Nigeria.
2013
In 2013, Axxela established Gas Network Services Limited (GNSL), a Compressed Natural Gas (CNG) facility with an output capacity of 5.2MMSCFD. Later same year, the now divested Alausa Independent Power Plant was commissioned to supply uninterrupted power supply to the Lagos State Secretariat, Alausa, Ikeja and affiliate surrounding agencies. The plant has the capacity of generating 10.4 megawatts of electricity.[6]
2016
In 2016, Oando Plc sold a 75% equity stake in its midstream business, Oando Gas and Power Limited (OGP)[7] to Helios Investment Partners.
2017
In October 2017, Oando Gas & Power Limited (OGP), the erstwhile midstream business subsidiary of Oando PLC (Oando), announced the change of its corporate identity and branding to Axxela Limited (“Axxela”).
2018
In 2018, Axxela signed a Gas Transportation Agreement (GTA) with the West African Gas Pipeline Company Ltd (WAGP) to transport over 15 million standard cubic feet per day (MMSCFD) of natural gas via the West African Gas Pipeline (WAGP) to Lome, Togo.[8] [9]
2019
In February 2019, Global Credit Ratings assigned an initial national scale issuer rating of BBB+(NG) and A2(NG) in the long term and short term respectively to Axxela with the outlook accorded as Stable.[10][11] At its expiration, Axxela attained the rating for its second year running.[12] [13] In September 2019, the company also announced an upgrade of its corporate credit rating by Agusto & Co. from BBB to BBB+ with a Positive Outlook, reflecting the company’s financial and operational stability.
A subsidiary of Axxela, Gaslink Nigeria Limited, developed the Greater Lagos IV (GLIV) gas pipeline network in partnership with the Nigerian Gas Marketing Company (NGMC)[14]. The $30 million pipeline, which spans from Ijora through Lagos Island’s Marina axis, supplies gas to commercial and industrial off-takers along its route.
In 2019, Helios Investment Partners formally acquired full ownership of Axxela following its initial purchase of a majority stake in Axxela’s gas and power business enterprise in December 2016.[15]
2020
Axxela concluded the Axxela Funding 1 PLC Series 1 NGN10 billion Seven-Year Fixed Rate Senior Secured Bond Issue (under the NGN50 billion bond issuance programme) in May 2020. The bond issue had 24% oversubscription, bringing the Series 1 total proceeds to N11.5 billion.[16][17][18]
Subsequently, the company achieved a dual-listing of the bond on the Nigerian Stock Exchange (NSE) and the Financial Market Dealers Quotation, over-the-counter (FMDQ-OTC) market.[19]
Operations[edit]
Axxela is a private sector-led developer of natural gas distribution in Nigeria with operations across four subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.
Gaslink Nigeria Limited
Gaslink Nigeria Limited (GNL) is a joint venture between Axxela and the Nigerian Gas Marketing Company that controls a gas distribution franchise in the Greater Lagos area. With a pipeline network of over 100km with a capacity of 140MMSCFD and peak utilization of about 70MMSCFD, GNL provides natural gas to partners such as including Cadbury Nig.Plc., Flour Mills of Nigeria Plc., Dangote Sugar, and Nigerian Breweries, Plc.
Through the Above Ground Installation (AGI), GNL receives gas supply from NGMC city gate.
Central Horizon Gas Company
Central Horizon Gas Company (CHGC) is a distribution company located in the South-South region of Nigeria. It is a joint venture between Axxela and the Rivers State Government.
The facility is a 17km gas distribution network that has a throughput capacity of 50MMSCFD and currently serves customers with a current peak utilization of about 3MMSCFD.
Gas Network Services Limited
Axxela ventured into the virtual pipeline business with Gas Network Services Limited (GNSL). It presently operates a 5.2 MMSCFD a Compressed Natural Gas (CNG) Mother Station in Lagos, Nigeria. Natural gas is compressed into mobile tube trailers for onward delivery to customers’ locations within a 250km radius.
Transit Gas Nigeria Limited
Transit Gas Nigeria Limited is a partnership with the Nigeria Gas Marketing Company focused on the development of physical and virtual pipeline technology of gas supply and distribution. The subsidiary is responsible for the development of a 20 mmscfd Liquified Natural Gas facility in Ajaokuta, Kogi, in North central Nigeria. It is also developing a new Local Distribution Zone (LDZ) in the Sagamu-Iwopin axis in Ogun, South-West Nigeria.
Board of Directors
Boye Olasanya (Chairman)
Tope Lawani (Non-Executive Director)
Nitin Kaul (Non-Executive Director)
Ogbemi Ofuya (Non-Executive Director)
Bolaji Osunsanya (Chief Executive Officer:)
Jeremy Bending (Independent Director)
Kaat Van Hecke (Independent Director)
Corporate Social Responsibility[edit]
Axxela provides educational and infrastructural assistance to host communities.
2019
The company participated in the Lagos State government’s drivers’ workshop[20] and also renovated the Elegbata Sports Complex located along the Marina.[21]
Axxela has also shown interest in environmental sustainability.
It also sponsored a tree-planting initiative in the Lagos metropolis to support the state’s plan to plant 10 million trees as a measure to check the effects of climate change.[22]
2020
In response to the COVID-19 pandemic in 2020, Axxela donated 5,000kg of medical oxygen to the Lagos State Government. The donation was made to support the fight against the pandemic in Lagos, the epicenter of the virus in Nigeria.[23]
References[edit]
- ↑ "Axxela signs gas transportation agreement with WAGP". BusinessGhana. Retrieved 2020-10-06.
- ↑ "Axxela diversifies into West African gas markets". Pipelines International. Retrieved 2020-10-06.
- ↑ Africa, All (2010). "Nigeria: Oando's IPP to Power Lagos Water Facility". All Africa. Unknown parameter
|url-status=ignored (help) - ↑ "Lagos State Water Corporation". Lagos State Water Corporation. Retrieved 2020-10-06.
- ↑ "Seven Energy acquires East Horizon Gas Company for $250m". Vanguard News. 2014-04-01. Retrieved 2020-10-06.
- ↑ "Fashola commissions Alausa power plant". P.M. News. 2013-10-17. Retrieved 2020-10-06.
- ↑ Published. "Oando sells 49% stake in midstream unit for N35bn". Punch Newspapers. Retrieved 2020-10-06.
- ↑ "Axxela Signs Gas Agreement With West African Gas Pipeline Company | Independent Newspapers Nigeria". www.independent.ng. Retrieved 2020-10-06.
- ↑ "Axxela signs gas transportation agreement with WAGP". BusinessGhana. Retrieved 2020-10-06.
- ↑ "Global Ratings". 6 December 2018. Unknown parameter
|url-status=ignored (help) - ↑ "Invest Advocate". February 14, 2019. Unknown parameter
|url-status=ignored (help) - ↑ "Agusto & Co. assigns "Bbb+" rating and a positive outlook to Axxela Limited". Agusto & Co. Ltd. Retrieved 2020-10-06.
- ↑ "Agusto & Co Upgrades Axxela Limited's corporate credit rating". Thebizhub. 2019-09-09. Retrieved 2020-10-06.
- ↑ Published. "Axxela inaugurates $30m gas pipeline network in Lagos". Punch Newspapers. Retrieved 2020-10-06.
- ↑ Olalekan, Fakoyejo (2019-04-11). "Helios acquires Oando's stake to take full ownership of Axxela Limited". Nairametrics. Retrieved 2020-10-06.
- ↑ "Axxela N10 Billion Bond Issue Successful; 24% Oversubscribed". Businessday NG. 2020-05-22. Retrieved 2020-10-06.
- ↑ Olisah, Chike (2020-07-09). "FMDQ admits Axxela funding of N11.5 billion bond on its platform". Nairametrics. Retrieved 2020-10-06.
- ↑ editor (2020-05-28). "Axxela N10 Billion Bond Records 124% Subscription". THISDAYLIVE. Retrieved 2020-10-06.
- ↑ Correspondants, Our. "N11.5bn bond: Axxela achieves dual-listing on NSE, FMDQ". New Telegraph. Retrieved 2020-10-06.
- ↑ "Axxela reiterates commitment to road safety in Lagos". The Guardian Nigeria News - Nigeria and World News. 2019-02-08. Retrieved 2020-10-06.
- ↑ "Axxela boosts grassroots football developments in Lagos". Businessday NG. 2019-03-31. Retrieved 2020-10-06.
- ↑ "Axxela Partners Lagos On Tree Planting". NAIJA NEWS AGENCY. 2019-07-30. Retrieved 2020-10-06.
- ↑ "Axxela Donates Life-saving Medical Supplies to Lagos State Government". Businessday NG. 2020-04-15. Retrieved 2020-10-06.
External Links[edit]
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