Can you introduce Triumph Power and Gas Systems?

Triumph Power and Gas Systems is an integrated oil and gas service company. We specialize in providing services across the entire upstream production value chain of the oil and gas sector. Our core focus lies in offering operations and maintenance services for gas infrastructure, including gas plants, compressor stations, and gas-to-power plants. We not only provide equipment but also deploy personnel who operate, overhaul, and maintain these facilities. Our business model involves collaboration with globally recognized original equipment manufacturers to ensure the deployment of high-quality equipment. We work closely with these partners to install, operate, and maintain equipment in oil production and power stations, ensuring optimal availability for our clients.

Could you discuss recent trends in demand for your services and gas compressors? 

We have witnessed a notable increase in demand recently for our services. Several projects that were previously stagnant have been revived. The recent executive order signed by the President has been particularly impactful, as it aims to streamline the contracting process and incentivize investment in gas production. Notably, the threshold for regulatory approval has been raised significantly to US$10 million and fiscal incentives provided for gas production. This adjustment has led to a surge in activity. The government's declaration of a Decade of Gas and Nigeria's emphasis on its status as a gas country has heightened demand for our services, particularly in gas-to-power and gas compression initiatives. Overall, these factors have contributed to a substantial increase in demand for our services in recent times, underscoring the positive impact of executive orders on project initiation and contract timelines.

What recent developments have you observed in the gas and power sector?

The government has shifted its focus towards domestic gas utilization, recognizing its potential to transform the economy, instead of just exporting LNG. We are witnessing a surge in domestic gas-related projects such as the Anoh Gas plant, AKK project and Brass Methanol Plant. The government is actively addressing issues surrounding gas supply agreements to facilitate the progress of such projects. Consequently, we anticipate an increase in gas-based initiatives, including gas-to-power plants. Recent deregulation efforts allowing states to generate, transmit and distribute power are expected to stimulate private investment in the power sector. This shift is crucial for addressing longstanding challenges with irregular power supply in Nigeria. Additionally, we are seeing a rise in projects related to liquefied petroleum gas (LPG) and other gas-based industries, which will contribute significantly to the country's economic growth. 

What advantages do African companies possess over competitors operating in African markets?

We have a significant cost advantage. This is not about compromising on quality, though. We have invested heavily in building the capacity to deliver top-notch work without compromising on quality. Additionally, our deep understanding of Africa and its socio-political landscape sets us apart from international competitors. Our aim is to empower and ensure that local capacity is developed and sustained. This approach gives us a competitive edge, as we believe that a local Mozambican or Angolan company with strong local capacity will outperform any competitor relying solely on external resources. 

Could you outline your strategic priorities for the next couple of years?

Our primary objective is to expand our operations across sub-Saharan Africa. We aim to establish our presence in countries like Senegal, Uganda and Mozambique. Our strategy is rooted in the sustained growth of the oil industry, recognizing that despite discussions around greenhouse emissions, gas and oil remain the most accessible and cost-effective energy sources for development in Africa. To achieve this expansion, we are committed to investing in local capacity building, including training programs and acquiring essential equipment and tooling. A crucial aspect of our approach is our partnership with OEMs or their affiliates, many of whom are showing interest in collaborating to establish service centres and manufacturing hubs within Africa. This move aligns with the burgeoning economic opportunities presented by the African Continental Free Trade Area, with its promise of zero tariffs and a unified market. So, our strategic focus is on building capacity in every country we operate in, leveraging initiatives like the Africa Continental Free Trade Agreement to position ourselves as integral players in the largest economic bloc globally over the next five years.