Gasol Power

Gasol intends to acquire strategic equity interests in power projects as the final link in its gas to power value chain.

Power GenerationAfrica has one of the most dynamic, but underfunded, power sectors in the world. In many African countries, less than 25% of the population has access to electricity. African governments have committed themselves to increasing the levels of access to electricity to over 50% by 2030. This increase will require a substantial increase in Africa's installed generating capacity.

One of the key factors inhibiting the installation of new capacity is the high cost of oil-based fuels needed to run liquid fuelled generating equipment. Gasol intends to drive the installation of additional gas fired generating capacity by investing in existing dual fuel facilities to encourage them to sign up to gas supply agreements with Gasol, and by investing in development projects for new gas fired capacity or development projects for converting existing liquid fuelled plants to gas firing. Gasol will be looking at opportunities to participate in independent power producer projects and public/private partnerships. 

By investing in the gas fired power sector, Gasol will benefit from the strong electricity prices in the region, including power sales through the West African Power pool to inland countries inaccessible to the WAGP or a floating LNG supplier, and will secure a substantial share of the gas to power market. In return, Gasol's investments in each country will increase the gas fired generating capacity, which will result in cleaner air from reduced emissions, a stable, more reliable supply of power and an increase in the country's GDP.