Rising to the challenge of bridging the energy deficit, Seplat Energy Plc has said that it’s targeting 850 million standard cubic feet (MMscf) of gas per day in Nigeria through its new critical projects.
This feat, it said, would help consolidate the company’s position as a leading gas supplier to the Nigerian market.
The Director of New Energy, Seplat Energy, Mr Okechukwu Mba, said this while delivering a keynote at the ongoing Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference & Exhibition (NAICE) in Lagos.
Mba, who represented the CEO of Seplat Energy, Mr. Roger Brown, spoke on the conference theme: “Petroleum Industry Value Chain Optimization: The Inevitability of Midstream and Downstream Development.”
He said the company’s new $700 million ANOH gas project in Imo State, with a capacity of 300MMscfd of gas in addition to Liquefied Petroleum Gas (LPG), will greatly boost domestic gas supply.
“Also, completing a new 85MMscfd gas plant in Sapele, Delta State, is expected to come on stream by Q4 this year. These new projects bring Seplat Energy’s gas processing capacity to 850MMscfd, consolidating our position as a leading gas supplier to the domestic market,” Mba noted.
He said Seplat Energy is also looking to invest in Compressed Natural Gas (CNG) projects in support of the government’s CNG initiative, adding that: “When we receive approval for the MPNU transaction, we intend to promptly develop the significant gas resources in the asset to further enhance Nigeria’s energy security.”
“Currently, the country is experiencing an insufficient supply of electricity from the national grid (about 4GW daily); very low electricity usage per capita (with some Nigerians having no access to energy); insufficient supply of gas to some power plants; and with a bulk of electricity used in Nigeria generated off-grid at two or three times the cost of generation using gas turbines.
To this end, Mba said, “We need to develop our abundant gas resources and deliver sufficient gas to the power sector for energy security. Gas is an affordable and reliable source of energy. Incentives provided in the recent Executive Orders as well as the recent review of Domestic Gas Delivery Obligation (DGDO) gas prices are commendable.
“Current reforms in the power sector need to be sustained, like tariff increases, bilateral power trading between power generation companies (GenCos) and power distribution companies (DisCos). Key gas infrastructure like the Obiafu-Obrikom-Oben (OB3), the Ajaokuta-Kaduna-Kano (AKK) gas pipelines, and so on, should be delivered.”
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