Story by Olabode Jegede
The Chief Executive Officer, Seplat Petroleum Development Company Plc, Mr. Austin Avuru has stated that the Assa North-Ohaji South (ANOH) gas processing project will boost Nigeria’s domestic gas supply significantly.
He made this statement on Friday during its 2019 Capital Markets Day at the Nigerian Stock Exchange (NSE), held in Lagos while giving a presentation on the company’s gas business to investors, sector and financial analysts.
Avuru said the market’s gas price remains strong and the long-term outlook for gas in Nigeria and the regional market remain strong.
The ANOH gas processing project is managed by Anoh Gas Processing Company (AGPC), an incorporated joint venture (IJV) between Seplat and the Nigerian Gas Company.
AGPC seeks to develop a 300 Mscfd midstream plant on OML 53 to process future wet gas production from the upstream unit.
Avuru noted that the ANOH gas processing plant will be the first stand-alone midstream joint venture business between the Nigerian National petroleum Corporation (NNPC) and a company in the private sector.
According to him, Seplat aims to be the largest supplier of gas to the domestic market with the ANOH project.
“By the time we commission the ANOH project, we will be able to produce 850 Mscfd.
“Overall, the gas business was not attractive in 2010 and some years after. Seplat however took a conscious decision to invest in the gas business upon the price of gas inching up as ‘willing buyer willing seller’ commercial terms became possible.
“The company is uniquely situated within the existing gas pipeline network and therefore leveraged on this to significantly expand its Oben gas plant. The revenue from the expanded Oben gas plant has been impressive motivating the company to seek further investment in gas,”he said.
He also clarified that the company’s gas is for the domestic market, quipping that Nigeria has a notable population which is projected to continue to grow to 450 million people by 2050.
He noted that “Seplat has strategically positioned itself ahead of that opportunity and with projected demand for gas and improved fiscal regime, there is a compelling case for gas.
“Displacing diesel in Nigeria’s environment is a priority for the company. Currently, Seplat gas accounts for 30 to 35 per cent of power generated and the company is determined to continue the lead in this area.”
“For Seplat, our gas business is a national project. As a result, facilitating gas to power and gas to industry have become critical for the company,” He added.
In his closing remarks, the CEO stated that, “The market gas price remains strong and the long term outlook for gas in Nigeria and the regional market remain strong. Seplat is participating in major national development with its gas business, and the company is delighted to, through its gas business, deliver major national priority while earning revenue.”
Furthermore, The Managing Director of AGPC, Yetunde Taiwo provided comprehensive information on the ANOH project, highlighting project development overview, contracting and Local Content strategy, regulatory compliance, the commercial structure, community management and project execution schedule, amongst others.
The Chief Finance Officer, Mr. Roger Brown provided highlights on the funding structure showing that the company proactively is addressing debt investors and funding considerations upfront to ensure the success of the project. He added that the company has received a significant show of interest with major key stakeholders, both from international and local banks, amongst others.