Sopuruchi Onwuka

Leading indigenous natural gas provider, Axxela Limited has earned an international partnership deal capable of utilizing imported capital to spread out larger gas supply facilities in Nigeria and West Africa.

Ad >>>

The company stated that the partnership agreement between parent Helios Investment Partners and Sojitz Corporation of Japan would entail sale of 25 percent of Axxela’s shares and make it tap the full global weight of both investing companies in solidifying its position in domestic and regional gas business. With the deal, both Helios and Sojitz would now become shareholders of the company.

According to a statement from Axxela, Helios would retain 75 percent of the company while Sojitz takes the rest. And the partnership of the two firms would fill into the capacity of Axxela to propel growth in existing businesses and also drive greater diversification into cleaner energy.

The transaction would market Sojitz’s first equity investment in Africa, indicating its growth ambitions in the continent and a blueprint for greater collaboration between the investing companies across a range of sectors.

Using the Axxela as joint business entity, Helios and Sojitz plan to accelerate the company’s growth leveraging Sojitz experience in several industries. The company’s experience covers the full energy spectrum, automotive, aerospace, agriculture, chemicals, consumer goods, healthcare, infrastructure and resources.

Axxela projects Sojitz as holding deep expertise in gas and power infrastructure sector, especially in the development of gas distribution networks, LNG terminals and power plants.

The Oracle Today reports that Axxela is one of the biggest gas distribution companies in Nigeria with a tie in to the regional market. The company operates some of the most viable distribution concessions that fire production at industrial hubs in Western Nigeria. It is also one of the designated shippers in the West African Gas Pipeline which circulates Nigerian gas to the industrial hubs of West Africa.

The West African Gas Pipeline (WAGP) connects four key regional economies of Nigeria, Benin, Togo and Ghana. There is intention by stakeholders in the project to extend the gas conduit as far as Guinea.

In the past 21 years, Axxela has sustained, optimized and reduced the carbon footprint of over 200 industrial customers in southern Nigeria with a range of pipeline natural gas, compressed natural gas (CNG) and liquefied natural gas (LNG) options.

Veteran and pragmatic gas man, Bolaji Osunsanya, is the managing Director of Axxela. And would by virtue of the new deal be welcoming not just capital importation but also agglomeration of experiences and expertise in providing low carbon solutions to firing electricity and industrial production.

With pioneering position in development of energy delivery infrastructure in Nigeria and West Africa, Axxela also built string reputation in supporting industries and helping national economic growth with cheaper, cleaner and more reliable fuel products.

And with the rave of energy decarbonisation and transition, Axxela says it is facilitating industrial fuel switching from gas oils to natural gas, translating to reduction in the emission of carbon dioxide, nitric oxide, sulphur oxide.

Axxela declared that it helped cut industrial emission by its customers by significant 1.7 million tonnes between 2018 and 2020. It added that it would continue to curb emissions by expanding by growing its businesses through emerging affiliation with Sojitz Corporation.

Helios and Sojitz, according to the statement, would accelerate Axxela’s businesses through deployment of innovative expertise in delivering gas and power infrastructure projects, and their global reputation for low carbon energy solutions.