With CETPower as a strategic partner and off-take anchor, CETGas is currently putting measures in place to drive an LNG and CNG Solution initiative, in the South-East region of the country.
Via the proposed arrangement, CETGas will drive a virtual pipeline solution, modeled after harnessing gas from a gas source (gas processing plant or pipeline from a gas field), which will then be compressed into LNG and CNG and trucked in specialized cascade containers, to CETPower’s gas fired plants within the South-East region of Nigeria. The rollout plan will commence with the site build of a Liquefaction Plant, to convert processed gas to LNG, which will then be re-gasified at the customer’s end. The LNG roll-out will promptly be followed by a CNG model to cover areas with shorter distances (from the gas source). The overarching objective is to utilize both models in delivering our strategic Gas-to-Power goals.
Discussions are on-going, within the Delta region of Nigeria, for arrangements to off-take gas to serve as a feedstock for CETGas. The necessary capital investment ($6.5m) required to set up the necessary infrastructure for our LNG initiative, has been earmarked. We intend to leverage on this equity, to raise further capital ($19.5m) from third parties, via an investment road show. Ultimately, we would leverage on the total capital raised ($26m), to access $100m in debt, in a 20%: 80% Equity/Debt mix. The venture is envisaged, to take off in Q1 of 2016.
