June 13, 2024
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OIL & GAS

Nigeria’s Gas Supply Gets 25% Boost As Tinubu Commissions 3 Projects

Nigerian President Bola Ahmed Tinubu has commissioned three milestone projects, the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH-Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline across Delta and Imo states.

The hybrid commissioning according to Daily Trust was done virtually by the president and physically by the Minister of Petroleum (Gas), Ekperikpe Ekpo, and the governors of the host communities.

The president said the commissioning was highly significant to the country as it demonstrated the administration’s concerted efforts to accelerate the development of critical gas infrastructure geared at significantly enhancing the supply of energy to boost industrial growth and create employment opportunities.

President Tinubu said: “It is pleasing that approximately 500 MMscfd 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.”

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He commended the strategic vision of the state-owned oil firm NNPC Limited and its partners, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy Plc, for the laudable projects.

In his address, Mr Ekpo said the president’s decision to eliminate fuel subsidies at the start of his administration had compelled increased spending in the upstream and midstream gas development and the use of gas as an appropriate, more cost-effective and cleaner alternative to diesel and gasoline.

He said in keeping with the climate control accord, the measure solidified the use of gas as “our transition fuel as we move the nation towards achieving green energy sufficiency by 2060.”

NNPCL’s Group Chief Officer, Mele Kolo Kyari, in his remarks, said: “The three infrastructure projects will enable additional gas processing capacity and also increase the supply of Liquefied Petroleum Gas (LPG) thereby reducing the dependency on importation.

“Also, the projects are fully in line with the federal government’s quest to derive value from the nation’s gas assets while eliminating gas flaring and moving towards environmentally friendly energy sources.”

He noted that Nigeria was endowed with significant natural gas resources of over 209TCF of proven gas reserves with the potential to grow to over 600TCF. The Board Chairman of Seplat, Senator Udoma Udo Udoma, described the projects as part of the seven critical developments in the country.

He said the four trillion reserves in the Assa community could feed multiple gas plant processing hubs.

He said the project supported Seplat’s vision of leading Nigeria’s energy transition, adding that if all the gas from the plant went into the power sector, it would produce enough electricity to power five million Nigerians.

The AHL Gas Processing Plant 2 (AHLGPP 2) is a project including utility and storage facilities, connecting pipelines and truck loading facilities.

It is a joint venture between SEEPCO and NNPCL to process wet feed gas to produce dry lean gas, propane and LPG for domestic use.

Construction started in March, 2023, and was inaugurated in May, 2024. The plant has a capacity of 200 million standard cubic feet per day.

The second project is the $260m ANOH Gas Processing Plant (ANOH GPP) in the Assa community, Ohaji-Egbema, Imo State. It is a 300MMscfd gas processing plant, storage and logistics facility with possible expansion to 600MMscfd

The plant will process natural gas, produce dry gas (power), condensate for export and LPG for domestic use. The plant was completed in December, 2023, and it is a partnership between Seplat Energy and NNPCL Gas Infrastructure Company (NGIC).

The third plant is the 36 x 23.3km ANOH GAS PIPELINE PROJECT-OB3 Custody Transfer Metering (CTM) LINKUP. It has a current capacity of 600 MMscf/d (design capacity: 1,200 MMscf/d)

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