Seplat gas plant to boost power generation in Nigeria

By Salamatu Ejembi.


Seplat Petroleum Development Company Plc, an independent indigenous Nigerian upstream exploration and production company, has said that the Assa North-Ohaji South (ANOH) gas and condensate processing plant in Imo state, South-East Nigeria, slated to commence operations in 2021, will further boost the power generation in Nigeria by over 1,200 megawatts.

The General Manager, Gas at Seplat, Mr. Okechukwu Mba, disclosed this at the Nigerian International Petroleum Summit (NIPS) 2020 held in Abuja, Nigeria’s capital.

Speaking during a panel session dubbed: ‘Charting the Way Forward for Gas’ the Seplat GM noted:

“Strategically the company is positioned to access Nigeria’s main demand centres. The current well stock delivery was around 300 Million standard cubic feet per day (Gross).

“With over $300million invested in Oben Gas Plant Expansion Project, which is another gas plant run by Seplat, the company currently contributes about 30% of gas to power generation in Nigeria.

“ANOH project has the capacity to unlock over 1,200MW of gas constrained power generation capacity.

 “Despite the huge gas reserves, the country has been unable to translate its resources to effectively boost the economy.”

He enumerated the key challenges the industry faces today in translating reserves to value as follows: Lack of adequate infrastructure (constraint on gas transmission distribution); funding constraints for upstream, midstream and downstream sectors; and sub-optimal institutional and regulatory framework including extensive and bureaucratic process for obtaining licenses and approvals, weak corporate governance and policy inconsistencies.

In addition, he said uncertainties around changes in fiscal framework, local community crisis, mismatch in currency (gas revenue in Naira versus costs in United States Dollar), and Domestic Supply Obligation (DSO) gas pricing constraints were prevailing challenges.

“The continent can fuel an economy four-times larger than today with only 50% more energy driven by a major shift towards energy sources such as renewables and natural gas and efficiency improvements.

“Stated Policies Scenario reflects the impact of existing policy frameworks and today’s announced policy intentions. The aim is to hold up a mirror to the plans of today’s policy makers and illustrate their consequences for energy use, emissions and energy security.”

The Africa Case Scenario, he noted, was built on the premise of “Agenda 2063”, established by the Heads of State and Governments of the African Union in 2015, and “in this case, faster economic expansion is accompanied by the full achievement of access to electricity and clean cooking, in line with Sustainable Development Goal 7.”

The Seplat General Manager said Nigeria could save significantly on CO2 emissions by replacing diesel generators with natural gas plants – potentially reducing CO2 emissions by 18.2 million metric tonnes per year. This would, in turn, improve the standard of living of Nigerian citizens through reduced exposure to Greenhouse Gas and noise pollution from generators.

“Natural gas is a cleaner fossil fuel and as such can help Nigeria achieve her developmental aspirations by increasing power generation efficiently with relatively low climate damage thus delivering a win-win scenario,”  he noted.

Meanwhile, Seplat emerged as the winner of Award for Excellence in Corporate Social Responsibility (Indigenous Petroleum Producer category) at the Nigerian International Petroleum Summit (NIPS) 2020.

According to the organizers of the summit and award, Seplat was recognized for its huge commitment to sustainable CSR programmes for the 2019 business year and the impactful effects they had on the company’s host communities and the country at large.

Over the years, Seplat had deployed its signature CSR initiative: The Eye Can See, Pearls Quiz and Safe Motherhood programmes across its host communities in Delta, Edo and Imo states. In addition to these, it has also invested in skills acquisition and entrepreneurship in these areas and across the nation.

After an industry-wide electronic voting exercise, Seplat was said to have topped the category, the organizers said.

Amaka E. Nliam