Sapele gas plant to commence production in Q4 2024 – Seplat CEO
Barring any unforeseen circumstances, Seplat Energy Plc’s new 85 million standard cubic feet per day (85MMscfd) gas plant in Sapele Delta state will come on stream by Q4 this year.
The CEO of Seplat Energy, Mr. Roger Brown, disclosed this while delivering a keynote at the ongoing Society of Petroleum Engineers (SPE) Nigerian Council’s 47th Nigeria Annual International Conference & Exhibition (NAICE) in Lagos.
Brow, who was represented by the Director New Energy, Seplat Energy, Okechukwu Mba, said the company is rising to the challenge of 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.
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 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,” he noted.
He said Seplat energy is 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.”
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.
To this end, he 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,” he said.
