….Says AHL GPP -2, AGPC Projects will boost nation’s industrialisation

Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has commended President Bola Tinubu for the courage and vision in ending fuel subsidy, saying the decision has led to increased investments in unlocking the Nation’s huge gas potential for the benefit of citizens, the economy and environment.

The Minister stated this in an address at the Presidential Commissioning of Critical Gas Infrastructure Projects with the theme “From Gas to Prosperity, Renewed Hope”on Wednesday in Delta State.

He said: “Mr. President, the decision to eliminate fuel subsidies at the start of your administration has compelled increased spending in upstream and midstream gas development, and the use of gas as an appropriate, more cost-effective, and cleaner alternative to diesel and gasoline. Furthermore, in keeping with the Paris Climate Change agreement, this measure solidifies the use of gas as our transition fuel as we move the Nation towards achieving green energy sufficiency by 2060.”

The Minister appreciated President Tinubu, saying his “inspiring leadership has been the driving force behind our progress towards a future full of opportunity and promise.”

He described the AHL Gas Processing Plant 2 (GPP – 2) and ANOH Gas Processing Company (AGPC) Plant, which were commissioned, as important facets of the Decade of Gas initiative, and a reflection of the NNPC Ltd. and its Joint Venture partners’ efforts.

The Federal Government intervention policy in the gas sector has seen domestic production increased by 800MMscf/day.

On the AHL Gas Processing Plant 2 (GPP – 2), the Minister said it was a Joint Venture (JV) between NNPC Limited and Sterling Exploration and Exploration Company Ltd. (SEEPCO), for the development of the AHL Gas Processing Plant, which will process 200MMscf/d of natural gas.

“In addition to producing over 160,000 metric tonnes of propane and 100,000 metric tonnes of butane annually, this plant promotes rapid industrialization and reduces reliance on LPG import,” he ssid.

Ekpo also had this to say on the ANOH Gas Processing Plant (AGPC):
“With a capacity of 600 million standard cubic feet per day (MMscfd), the ANOH Gas Processing Plant is a shining example of advancement. By processing non-associated gas from the Assa North – Ohaji South field in Imo State, this integrated gas processing plant will produce LPG, condensate, and dry gas. This plant, developed by ANOH Gas Processing Company (AGPC), a joint venture owned by NNPC Limited and Seplat Energy Plc, will greatly enhance the availability of domestic gas, which will boost power generation and hasten industrialization.

The other project which was commissioned is the 23.3km X 36” ANOH-OB3 CTMS Gas Pipeline Project which involved the Engineering, Procurement, and Construction of the 36″ x 23.3km ANOH-OB3 Project as part of the CTMS Gas Pipeline Project (ANOH-OB3).”

According to him, this pipeline will deliver dry gas from the Assa North-Ohaji South primary treatment facility (PTF) into the OB3 pipeline system, which would provide the means evacuating and transmitting the treated gas to both the AKK Pipeline and the Western Domestic Gas Market.

Shell is currently probing reports of smoke and explosions observed early Tuesday near its Gbaran Ubie oil and gas installation in Nigeria’s Bayelsa state, according to a report by Reuters.

The fire incident, reported in the early morning of Tuesday, involved sounds of explosions and sightings of smoke at a site where pipeline repairs were actively being conducted.

Despite the alarming reports, the Shell spokesperson assured that the incident would not necessitate an immediate operational shutdown of the facility.

Meanwhile, the company said it is taking steps to investigate the specifics of the incident and assess any potential impacts on its operations.

The Gbaran facility, which began operations in 2010, is by far the most important Nigeria LNG gas feedstock project, processing almost 2 billion standard cubic feet of gas per day.

“We are actively monitoring reports of smoke detected near our Gbaran Central Processing Facility in Bayelsa State.

“While the source appears to be external to our facility, we are in close communication with regulatory authorities to look into the incident and ensure the safety of the surrounding communities,” a Shell spokesperson said in a statement.

Shell did not immediately respond to the accounts of residents in the area.

Early Tuesday morning, residents near the Gbaran Ubie facility in Bayelsa State were startled by a loud explosion that reportedly shook the ground and sent thick plumes of smoke into the sky. Ovie Ogbuku, a local resident, described the incident to Reuters, saying,

“At about 7 a.m., the sound was so deafening that it shook the earth’s foundation, prompting us to run for our lives. The result is the thick smoke you see now, which continues to billow from the site.”

The cause of the explosion is still unknown, but thankfully, according to another resident, Uche Ede, it occurred far enough from residential areas to avoid any fatalities.

“We don’t know what caused the explosion, but we are thankful that no lives were lost,” Ede told reporters.

He added that the community remains on edge as the area has been cordoned off by authorities and they await further information.

The Nigerian Upstream Petroleum Regulatory Commission has announced the commencement of the bidding process for 12 oil blocks recently listed for sale.

It also signals the start of the 2024 Nigeria Petroleum Licensing Round and the resumption of the 2022/2023 mini-bid round.

This was contained in a press release signed by the commission’s chief executive, Gbenga Komolafe during the week in Abuja.

Last month, the commission issued the first announcement on the bidding process.

It also waived the signature bonus requirement in the bidding process to woo investors for the auctioned oil blocks.

He said, “On behalf of the Federal Government of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission is pleased to announce the commencement of the 2024 Petroleum Licensing Round.”

On the number of blocks for the offer, Komolafe noted, “We have identified 12 blocks that cut across deep offshore, shallow water and onshore terrains to be made available to interested investors.”

According to him, this licensing round marks a significant milestone in our commitment to fostering sustainable growth and innovation within the energy sector, while providing economic opportunities for investment to spur new exploration, and development activities within our Petroleum landscape.

He explained that the 2024 Licensing Round represents an opportunity for both domestic and international stakeholders to engage in the exploration and development of Nigeria’s hydrocarbon resources.

He emphasised that at the core of this approach is the availability of top-notch geological and geophysical data.

Komolafe said the National Data Repository of NUPRC, in collaboration with multi-client partners, is committed to providing access to extensive and robust datasets to prospective bidders to enhance their decision-making.

Commenting on the offer of 12 blocks, he said in line with the objectives of the licensing round, the offer comprises a diverse range of exploration prospects and discoveries with varying technical and operational preferences.

Komolafe added, “Our goal for this licensing round is to harness innovative exploration techniques and foster partnerships that will enhance our production capabilities and ensure environmental sustainability.

“We anticipate that this initiative will not only expand our operations but also significantly contribute to the global energy supply, aligning with international energy security goals.”

He underscored a comprehensive approach to resource management, highlighting that the 2024 Licensing Round gives utmost importance to environmental, social, and governance factors.

The NUPRC boss further noted that by incorporating ESG criteria into the licensing process, stakeholders can contribute to sustainable development while harnessing the nation’s natural resources responsibly.

According to him, the success of the 2024 Licensing Round hinges on collaboration among all stakeholders, including government agencies, industry players, and local communities.

He said by fostering a conducive investment environment and promoting best practices in resource management for shared prosperity.

Komolafe explained that the 2024 licensing Round is the second in a series of bid rounds and will be managed by NUPRC under the provisions of the Petroleum Industry Act 2021.

He said the PIA provides enhanced legal and regulatory rules that encourage and promote investment for the mutual benefit of the people of the Federal Republic of Nigeria, international and national investors, and the host communities while ensuring environmental sustainability.