Foremost Nigerian independent energy company, Seplat Energy Plc has declared its commitment to the challenge of resolving energy deficit in Nigeria through its new critical projects, which are capable of taking the company’s gas processing capacity to 850 million standard cubic feet per day (mmscfd) consolidating the company’s position as a leading gas supplier to the Nigerian market.
Director, New Energy, Seplat Energy, Mr. Okechukwu Mba, stated this while delivering a keynote at the ongoing Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference and Exhibition (NAICE) in Lagos.
Mba, who represented the CEO of Seplat Energy, Mr. Roger Brown, spoke on the conference with the 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 Ga (LPG) will greatly boost domestic gas supply.
“Also completing a new 85 mmscfd gas plant in Sapele, Delta State expected to come on stream by Q4 of this year. These new projects bring Seplat Energy’s gas processing capacity to 850 mmscfd, consolidating our position as a leading gas supplier to the domestic market,” Mba noted.
He said Seplat Energy was poised to invest in Compressed Natural gas (CNG) projects in support of the government’s CNG initiative, adding: “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 insufficient supply of electricity from the national grid (about 4GW daily); very low electricity usage per-capita (with some Nigerians with 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.
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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 Nigeria’s 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, among others should be delivered.”
