Seplat Energy Plc, Nigeria's leading independent energy company, says it 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.
The Director New Energy, Seplat Energy, Mr. Okechukwu Mba, said 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.
Mr. Mba, who represented the CEO of Seplat Energy, Mr. Roger Brown, spoke on the Conference theme: “Petroleum Industry Value Chain Optimization: The Inevitability of Midstream and Downstream Development”.
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,” Mba 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, Mba 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.”
The company also reiterated its resolve to addressing the dual challenges of ensuring energy security and meeting climate change mitigation targets.
Mr. Okechukwu Mba, gave the assurance during a panel session themed “Energy Security: Exploring the Interplay Between Technology, Market Dynamics and Organizational Capabilities”.
Mba, who represented Mr. Roger Brown, CEO Seplat Energy Plc, at the session, said every molecule of gas Seplat Energy produces is targeted at displacing utilizable diesel, and the company’s new gas plant developments now come with Liquefied Petroleum Gas (LPG) installations, which promote clean energy and discourages the use of biomass for cooking.
“We are committed to ending routine gas flaring by 2025, and all projects aimed at making this a reality are on track,” Mba assured. In a bid to end gas flaring as targeted, Seplat Energy has continued to progress efforts to secure evacuation options for unprocessed associated gas from the Sapele Flow Station. Alongside this, work has continued on the construction of the Sapele Integrated Gas Plant (SIGP), which is scheduled to be completed during H2 2024. Once operational, SIGP offtake has the potential to materially reduce Group Scope 1 emissions.
Other ongoing key flare-out projects, including the Western Asset Flares Out (installation of VRU compressors), Sapele LPG Storage & Offloading Facility, Oben LPG Project and Ohaji Flares Out Project, are on track for completion by their respective due dates.
The Seplat New Energy Director also referenced the company’s Tree4Life initiative, which recently saw the NEPL/Seplat Energy joint venture and the Edo State Government sign an agreement that allocates 6,000 hectares of land from Edo State protected forest reserves to enable a large-scale tree planting initiative by Seplat Energy Plc. This is in furtherance to increase forest cover and carbon sequestration efforts within the region and ensuring a sustainable environment for living.
The efforts by Seplat Energy and other operators to drive LPG penetration in Nigeria also received commendations from the 2024 SPE NAICE participants and organisers, as the moves are expected to boost supply of LPG in Nigeria and possibly bring down prices of the commodity, thus promoting accessibility and energy security.
Also speaking to Seplat Energy’s commitment to ensuring sustainable business partnerships, Mba said all efforts are being deployed to check any form of production deferment and downtime by ensuring strong partnerships with suppliers, who are continuously supported to succeed in delivering value to Seplat Energy and its other stakeholders.
On the current opportunity available to Nigeria to ensure energy security, he said: “For Nigeria, it is important we use what we have (which is gas) to address the energy challenges we have and further boost energy access for our people.”