Nigerian President Bola Ahmed Tinubu has commissioned three expansion projects for natural gas processing plants and a gas pipeline executed by Nigerian National Petroleum Co. Ltd. (NNPC) and its partners, the national oil and gas company said.
“It is pleasing that approximately, 500 million standard cubic feet of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25 percent incremental growth in gas supply”, the president said, as quoted by an NNPC press release. “In practical terms, this translates into more gas to the Power Sector, Gas-Based Industries and other critical segments of the economy”.
One of the two gas processing projects now commissioned, the Ashtavinayak Hydrocarbon Ltd. (AHL) plant in Kwale, Delta, can process 125 MMcfpd of gas and produce 600,000 tons per day of liquid hydrocarbons such as liquefied petroleum gas (LPG) and propane according to AHL. AHL sources gas from NNPC fields in the state.
The other processing plant, developed by ANOH Gas Processing Co. Ltd. in Imo State, has a planned processing capacity of 600 MMcfpd, to be achieved in two phases. The gas is processed into dry gas, LPG and condensate, according to ANOH. The plant is supplied by a unitized gas development combining leases owned by Seplat Energy PLC and Shell Petroleum Development Company of Nigeria Ltd., according to ANOH.
Meanwhile the ANOH Obiafu-Obrikom-Oben Custody Transfer Metering Station Gas Pipeline Projects stretch 23.3 kilometers (14.5 miles), according to NNPC.
“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas fueled prosperity in our country”, Tinubu said.
“Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business”.
Natural gas production in Nigeria has grown 0.3 percent annually in the decade to 2022, with output that year standing at 40.4 billion cubic meters (1.4 trillion cubic feet), according to the latest Statistical Review of World Energy, a yearly report previously published by BP PLC but transferred to the London-based Energy Institute starting with the 2023 edition.
Nigeria’s LNG sector marked a breakthrough last December with the signing of an agreement by NNPC, local energy engineering company UTM Offshore Ltd. and the Delta government for the construction of a floating liquefied natural gas (FLNG) plant. The project, the first Nigerian FLNG plant according to developer UTM, has a planned capacity of 1.81 (MMtpa) to 2.72 MMtpa.
Associated and non-associated gas reserves in the West African country stood at 209.26 Tcf as of the start of 2024, according to a report by the Nigerian Upstream Petroleum Regulatory Commission April 16, 2024.
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