(Business in Cameroon) - Gaz du Cameroun (GDC), subsidiary of the fledgling British oil and gas company, Victoria Oil and Gas, stated on October 29 that it has finished building a pipeline under the Wouri River which runs through the economic capital, Douala. Thanks to this achievement, the company can now supply the Bonabéri industrial zone where there is a high concentration of factories.
At the same time, GDC also indicated that it had built 1.2 kilometres of pipeline in the Bonabéri zone, connecting three companies which already made investments to make the move from electricity to natural gas.
The company, which is developing the Logbaba natural gas project, seems to be on the right track. Among its clients, are the Dangote group’s factory and also Guiness Cameroon of the Diageo group which is a major player in Africa’s beverage market.
The company also stated that it is in talks with the national public electricity provider, Eneo. The company indicated in its annual report that it had negotiated with Customs to obtain an annual exemption on adapted generator group imports.
But these gains do not seem to impress Victoria Oil and Gas’ investors on the London financial market. After climbing on October 29, 2014 the day after the announcement about the pipeline’s completion, the company’s stock opened on October 31 3.3% lower.
On the London Stock Exchange investor forum, uncertainty about the exact number of clients the company has as well as its profitability left investors feeling jittery.