• Wednesday, May 29, 2024
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Oil-rich Nigeria shifts focus to gas as three plants come on stream

Oil-rich Nigeria shifts focus to gas as three plants come on stream

Africa’s biggest oil-producing country can convert from an oil to a gas giant in the template of Australia or Qatar as President Bola Tinubu inaugurated three critical gas infrastructure projects.

The three gas projects, located in Imo, Rivers and Delta States, will add 500MMscf/d gas production capacity to the country and also increase the available gas pipelines network by 23.3 kilometres to enhance the effective implementation of President Bola Tinubu’s directive on mandatory procurement of compressed-natural-gas (CNG) powered vehicles by all government ministries, departments, and agencies (MDAs).

At the event, Tinubu said the three critical gas projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring.

He said the delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity.

The projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively.

Tinubu said the commissioning event is highly significant to the country as it demonstrates the administration’s concerted efforts to accelerate the development of critical gas infrastructures geared at significantly enhancing the supply of energy to boost industrial growth and create employment opportunities.

Also, he said the projects are fully in line with the Decade of Gas initiative, and the Federal Government’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialisation.

He commended the strategic vision of NNPC Limited and its partners Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy Plc for this laudable and value-adding project.

The president said, “It is pleasing that approximately 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25 per cent incremental growth in gas supply.

“In practical terms, this is more gas to the Power Sector, Gas-Based Industries and other critical segments of the economy. I therefore commend the strategic vision of NNPC Limited and its partners Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy Plc for this laudable and value-adding project.

“From the outset of this administration, we have been very clear of our intention to leverage the virtually unlimited capacity of gas to drive economic growth. Aside from the presidential CNG initiative aimed at moving the good people of Nigeria away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivising gas development through Presidential Executive Orders.”

The president assured Nigerians that these projects are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realisation of gas-fueled prosperity in the country.

The projects commissioned on Wednesday include:

The AHL Gas Processing Plant 2 (GPP – 2).

The AHL gas facility has the capacity to process 200 million standard cubic feet per day. This expansion project pertains to the Kwale Gas Processing Plant (GPP – 1), which presently meets the gas demands of the domestic market with approximately 130 million standard cubic feet per day. The processing facility is engineered to handle 200 million standard cubic feet per day of high-quality gas and transport lean gas via the OB3 Gas Pipeline.

This enhanced gas provision will bolster the ongoing swift industrial development in Nigeria. The establishment of the AHL Gas Plant is being spearheaded by AHL Limited, a joint venture entity jointly owned by NNPC Limited and SEEPCO.

ANOH Gas Processing Plant (AGPC) – 300MMscf/d.

The ANOH gas facility is a comprehensive gas processing plant with the capacity to process 300 million standard cubic feet per day of non-linked gas extracted from the Assa North-Ohaji South field in Imo State.

This gas plant is currently under construction by ANOH Gas Processing Company, a jointly owned entity by NNPC Limited and Seplat Energy Plc, with both parties having an equal share in ownership.

ANOH-OB3 CTMS Gas Pipeline Project

The project consists of designing, acquiring, and building the 36”x23.3km ANOH-OB3 Project. It is estimated that around 600 million standard cubic feet of gas per day will be produced from two independent gas processing production trains with capacities of 2 x 300MMscf/d each, operated by AGPC & SPDC JV.

Upon completion, the projects will enhance domestic gas supply by around 500 million standard cubic feet per day, fostering a favourable investment environment and advancing overall economic development over time.