Gaz du Cameroun S.A. (“GDC”) is the operator of the Cameroon projects and delivers gas to grid power, thermal and industrial power customers using safe, consistent and scalable solutions via its 50km gas distribution pipeline network.
Douala is a major port city serving Central Africa and, in addition to being an import hub, is host to a range of major industrial complexes serving Cameroon and surrounding countries.
- Only onshore gas producer in Cameroon
- Neither supply nor demand constrained
- Offer customers a cheaper and cleaner alternative to current supply
- Strong Government support
- Opportunity to help resolve in-country power issues
- Revenue generating business and now operationally cash positive
A business model that can be applied to other African opportunities.
GDC currently has two producing wells La-105 (spudded in 2009) and La-107 (spudded in 2016). Remediation work on La-108 has commenced to extract a perforation gun stuck in the production tubing. The work will be performed using a hydraulic work-over unit. A clean out of the wellbore (tubing and lining) will then be carried out followed by perforation of the Upper Logbaba Sands. The La-108 well will then be tied-back to the existing flowline and the flowline made permanent. This work is expected to be completed in Q4 2019.
GDC’s gas processing plant on the Logbaba Project site has a 20mmscfd capacity. Planning and engineering for enhancements to the process plant are progressing to tie in with the La-108 well remediation. This work is being carried out in H2 2019.
The Wouri River has been crossed and will provide gas to another of the city’s key industrial zones located on the Bonaberi shore. GDC currently provides thermal gas, condensate and gas for grid powered small-scale electricity generation to customers.
GDC has built its own gas distribution network to deliver gas to the doors of its customers throughout the city of Douala. The pipeline network runs under the Wouri River providing gas to a key industrial zone located on the Bonaberi shore.
GDC’s 50km gas pipeline distributes gas across the city of Douala as illustrated in the schematic below (not to scale).
Products and Customers
GDC maximises its gas production through sales across a range of varied uses. With a significant central pipeline network established in the growing city of Douala, GDC’s engineering team helps design and install necessary conversion systems or power connections for new gas users and can deliver consistent gas supply for thermal and power uses. GDC supplies gas to over 35 industrial customers alongside supplying gas to the national grid.
GDC Supplies gas to state power operator ENEO’s 30MW Logbaba power station for the generation of electricity to the national grid. Modular generation sets are supplied and run through equipment partners Altaaqa Alternative Solutions Projects DWC-LLC (“Altaaqa”).
Further Grid Power Demand
There is a current deficit in grid power supply which is increasing as a result of the growing demand for power by Cameroonians and Cameroon businesses. Hydro power projects are being implemented nationally at a grand scale, but these will take a number of years to be commissioned. The government roadmap for power generation includes at least 30% of its power to be from thermal sources to ensure consistency at times of reduced rainfall. As the only onshore gas supplier, GDC is well positioned to deliver gas for power projects.
In July 2019 GDC signed a non-binding term sheet with Aksa Enerji Uretim A.S. (“Aksa Energy”) (“Term Sheet”) to supply Aksa Energy with up to 25mmsfd of gas to Aksa Energy’s planned 150MW power station at US$6.75 per mmbtu over a 25 year term ( with an option to extend for an additional 5 years. The location of the proposed power plant is expected to be near the Bekoko substation, near to GDC’s existing gas pipeline network and is planned for late 2020.
GDC supplies gas to customers for thermal use in boilers, process plants and furnaces. The core customers are those in medium to heavy industry.
Industrial Power Customers
Gas supplied to dedicated gas-fired electricity generators (“Gensets”) for customers’ factories and plants has became a key part in demonstrating the ability of GDC to drive power using gas.
Gas condensate, a by-product of the production of natural gas, is used as a cleaner and solvent, lantern and stove fuel and as a premium product in heavy oil production. Condensate can be taken by road tanker to various parts of the country.