Seplat Energy Plc, the largest indigenous energy company by market value, has identified its gas development programmes as a major boost for Nigeria’s energy transition agenda as well as the global call for carbon reduction.
Roger Brown, The Chief Executive Officer, Seplat Energy Plc, said this while addressing the media at the recently concluded Africa Oil Week (AOW) in Dubai, United Arab Emirates.
According to Seplat Energy’s CEO, most developed countries currently have gas grid bases forming a strong pedestal for renewables, which is far beyond what is obtainable in Nigeria where the grid base is diesel power.
“To transit to renewables, you need a grid base that works. So, our Decade of Gas mantra in Nigeria is aimed to provide the right grid base for that transition and Seplat Energy is well aligned to that. If you do not have the right grid base and want to go the way of renewables, you could end up going off-grid with small scale solar panels all around. It is important for the world to understand the peculiarities of Nigeria and that the country needs the right base to transit to renewables.”
Brown, who also spoke in a panel session dubbed, “Upstream Value Creation: Unbounded Opportunities Post-COVID”, where he outlined the company’s business strides, as well as its future strategies, said: “Nigeria must have energy which is right for its population. It has over 200 million people today and by 2050, there would probably be over 400 million Nigerians, which makes it the third most populous place in the world. For the 400 million people expected, we need to provide the right infrastructure. If you don’t, you are going to have a population migration as the average age in the country today is 18.”
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He said Seplat Energy’s business plans were on three-pronged and there are three pillars to it: the upstream oil and gas, where the company is a big independent producer in-country; gas processing business with existing and efficient gas plants, to be biggest gas processor in-country by early 2023, with a critical model for electrification in-country.
“The pillar three is the renewable business, making a very strong intent to give the transition energy that is right for Nigeria,” Brown said.
The CEO explained that the pillars are there to not only deliver the right energy mix, but other issues prevalent in the Nigerian space, adding that: “Nigeria has been described as a rich oil-producing country, but there is more gas.”
“The benefit of gas is very clear: it is a carbon reduction energy source today. Currently, Nigeria’s electricity source is predominantly off-grid diesel. Gas-fired power displaces the diesel option and has CO2 emission reduction of 30 to 50 percent depending on the technology deployed. So, for every molecule of gas we put into the market, we displace carbon. By displacing diesel-fired power, we are actively reducing carbon. But for Seplat Energy, this carbon reduction has to be proven,” Brown said.
He explained that Seplat bought its assets from the IOCs in 2010, and have continued to grow them over the years; being very successful in acquiring mature assets divested by the IOCs in Nigeria and growing the reserves base and production from those assets.
According to him, SEPLAT has also embarked on a new project which will further raise its total gas processing capacity to 540MMscfd. The ANOH Gas Processing Company (AGPC) Limited is a midstream gas company committed to the processing of gas from OML 53 for distribution to the local market. In August 2018, the Group entered into a shareholder agreement with Nigerian Gas Processing and Transportation Company (NGPTC) to subscribe for equal ownership of AGPC.
