News blog
Gasol
- BY: Andrew Hore |
- POSTED: 14/02/2008 |
Gasol plans to become a liquefied natural gas (LNG) business based in the Gulf of Guinea in Africa.
LNG is a clean source of energy and demand is growing because of high oil prices. There are large gas resources in the Gulf of Guinea, particularly in Nigeria. In the past much of this gas has been flared because producers have mainly been interested in oil. This gas and other resources can be converted into LNG.
LNG demand is forecast to grow at a compound average growth rate of 11% between 2001 and 2010.
Gasol will buy gas and build a plant to liquefy it. It already has oil and gas company Afren as a partner so getting the gas shouldn’t be difficult. The LNG will then be shipped to customers around the world and when it reaches its destination it will be regasified.
A liquefication plant will have to be built and this can take more than four years. Project finance from banks could cover nearly all of the cost of that plant which will cost millions of pounds.
This is an ambitious strategy for Gasol. At 9.5p, it is valued at £14.8m. Chief executive Soumo Bose has plenty of experience in the gas industry with the likes of BG Group and Calorgas.
The strategy will start to come together as the year progresses but it will take years before the business gets going.
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