On Monday, the Nigerian National Petroleum Corporation (NNPC) closed a deal with Shell Petroleum Development Company (SPDC), Seplat Petroleum Development Company Plc, Oando Plc and other partners for the execution of seven gas projects.
The gas projects worth $3.7 billion are meant to bridge the gas supply shortfall in the domestic market.
Today's landmark signing ceremony was on the Akri-Oguta, Oshi-Ubie and Obgainbiri-Afuo Unitisation & Unit Operating Agreements between @NNPCgroup , @Shell_Nigeria, @Oando_PLC, @NAOC and @TOTALNigeria @FMPRng @NNPCgroup #12BUFA pic.twitter.com/kuQplZIGe5
— NNPC Group (@NNPCgroup) July 9, 2018
Speaking in Lagos at the Framing Workshop on the Seven Critical Development Projects, where the agreement was signed, the group MD, Dr Maikanti Baru, said five of the projects are NNPC joint ventures and two projects by the Nigerian Petroleum Development Corporation (NPDC).
Scope of gas projects
Baru stated that some of the projects include the full utilisation of Uquo Gas Plant to deliver 200 million standard cubic feet of gas per day (mmscfd), through the NPDC's Utapate gas in Oil Mining Lease (OML) 13; and the joint development of OML 24, a joint venture between the NNPC and Newcross and OML 55, a JV between the corporation and BELEMA OIL.
The other projects are the full utilisation of Seplat Petroleum Development Company Plc's Oben Gas Plant to deliver 465mmscfd of gas; and the full utilisation of Pan Ocean's Ovade Gas Plant to deliver 130mmscfd.
"There exist another opportunity to utilise the spare capacity of 100mmsfd in Pan Ocean Ovade Gas Plant, which currently processes 30mmscfd due to sub-surface limitation. The plan was to send NPDC Oredo gas to Ovade for processing but due to lack of alignment of schedule, NPDC has progressed significantly with the installation of two compressors to supply the gas directly into the Escravos Lagos Pipeline System (ELPS),” he said.
“This non-alignment of purpose can be eliminated through proper synchronisation of our developments," Baru explained.
He pointed out that domestic gas demand is growing at an exponential rate that outpaces gas supply development plan. Read more: GE partners with Nigeria’s power utility on a power intervention project
A gap of about three billion cubic feet per day of gas by 2020 has been identified by NNPC, he said, adding that it will be bridged at the full completion of seven critical gas projects.