- Company’s gas processing capacity to hit 850 Million standard cubic feet daily
- Vows to help address Nigeria’s energy deficit
- Reaffirming its grip on the industry as the leader of all other Independents
Seplat Energy Plc says it is rising to the challenge of the existing and severe energy disequilibrium in Nigeria through its new and critical projects with the capacity to push the company’s gas processing intake to 850 Million standard cubic feet per day (MMscfd) thereby consolidating the company’s position as a leading gas supplier to the Nigerian market.
The Director New Energy, Seplat Energy, Mr. Okechukwu Mba, said this while delivering a keynote at the just-concluded Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference & Exhibition (NAICE) in Lagos.
Mr. 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’ new $700m ANOH gas project in Imo State, with a capacity of 300MMscfd of gas in addition to Liquefied Petroleum Gas (LPG) would greatly boost domestic gas supply.
“Also completing a new 85MMscfd gas plant in Sapele Delta state 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 that Seplat energy was 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.”
The country according to him is currently battling with severe electricity shortfall from the national grid of about 4GW daily, very low per-capita on electricity usage, lack of energy access among Nigerians, deficiencies in gas supply to power some plants – and this is 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 recent review of Domestic Gas Delivery Obligation (DGDO) gas prices are commendable.
“Current reforms in the power sector need to be sustained like tariff increase, bilateral power trading between power Generation Company (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.”