Nigeria is to add over 3.4 billion standard cubic feet of gas per day by 2020 as part of efforts to bridge projected medium-term gas supply gap, according to the Nigerian National Petroleum Corporation (NNPC).
The new development follows a new memorandum of understanding (MOU) signed yesterday in that respect between the corporation and Seplat Petroleum Development Company (SPDC) in Abuja.The state-owned parastatal had said the country’s gas production capacity reached seven billion cubic feet per day (cf/d) last year. With this fresh move, the nation would be producing over 10 billion cubic feet per day (cf/d) in 2020.
The project, Assa North and Ohaji South (ANOH) gas development scheme, is one of the seven critical development projects (7CGDP) geared at boosting gas production and infrastructure d in the country.Speaking at the event, NNPC Group Managing Director (GMD), Dr. Maikanti Baru, disclosed that a special purpose vehicle known as ANOH Gas Processing Company (AGPC) was being promoted by the corporation and Seplat to develop, build, operate and maintain the ANOH gas plant with an initial capacity of 300 million standard cubic feet per day in Imo State.
Represented by the Chief Operating Officer, Gas and Power, Saidu Mohammed, the GMD said NNPC would do everything possible to ensure that the project was delivered successfully.He urged the AGPC to complete the project on schedule, stressing that it was designed as a world-class gas processing plant with capacity to deliver between three and 3.4 billion standard cubit feet of gas daily.
Baru said: “Following the execution of Heads of Terms (HoT) by the Nigerian Gas Processing and Transportation Company (NGPTC) on behalf of the NNPC, Seplat and AGPC on December 19, 2017, the Steering Committee for the AGPC project has provided the leadership and broad guidance for the development and finalisation of the various commercial agreements required to underpin the project.”
The Chief Operating Officer of Seplat, Austin Avuru, said the plant remains a key project that captures the gas infrastructure development initiative of the Federal Government. He is optimistic that the AGPC would deliver the project within the next 18 months as well as achieve its objective of being a key gas supplier to both the domestic and export markets.
The pact included the AGPC Shareholders Agreement by AGPC, NGPTC and Seplat; AGPC Share Subscription Agreement among AGPC, NGPTC and Seplat; Wet Gas Sales and Purchase Agreement between by NNPC, Seplat and AGPC; Gas Sale and Purchase Agreement between AGPC and Nigerian Gas Marketing Company (NGMC) as well as Gas Marketing Agreement by AGPC and NGMC .