Major Boost for Domestic Supply as Seplat Achieves Mechanical Completion of $650m ANOH Gas Plant

•Company says milestone recorded without single lost-time incident

Peter Uzoho

Nigeria’s quest to ramp up domestic gas supply for accelerated power generation and industrialisation has received a major boost as Seplat Energy Plc yesterday, announced that the $650 million Assa North-Ohaji South (ANOH) gas plant installation works has reached mechanical completion.

The dual publicly quoted Nigerian independent energy company revealed that the mechanical completion was achieved on December 29, 2023, in line with the revised timetable.

Seplat also disclosed in a statement that the milestone was achieved without a single recordable Lost Time Incident (LTI) across 11 million man-hours, a feat it said was a testament to the focus of the whole team on safe and secure operations.

The ANOH Gas Processing Company (AGPC), an incorporated joint venture between Seplat Energy and NNPC Gas Infrastructure Company (NGIC) Limited, is delivering the ANOH gas plant with Phase One processing capacity of 300 million standard cubic feet per day (mmscfd) of gas.

Upon commencement of operations, the plant would deliver dry gas, condensate, and Liquefied Petroleum Gas (LPG) to customers.

The promoters of the gas plant envisaged that AGPC would sell the gas and LPG domestically, and the condensates to the international market.

The other key steps to first gas, as outlined in the company’s Interim Results announcement, were the drilling and hook-up of the upstream wells and completion of essential third-party infrastructure:  the Oben-Obiafu-Obrikom (OB3) pipeline river crossing and Spur Line connecting OB3 to the gas plant.

Completion of the third well (ASSN-05) was previously announced and the fourth and final well (ASSN-06) planned ahead of first gas has also now been completed by the upstream unit operator, Shell Petroleum Development Company (SPDC).

 “We now look forward to the completion of the necessary plant pre-commissioning activities and essential third-party infrastructure which will enable commissioning of the gas plant and commencement of operations.  Our previously communicated guidance for first gas is unchanged”, Chief Executive Officer, Seplat Energy, Roger Brown, said.

He added, “ANOH is an important strategic project for Seplat, it will roughly double our gas production, and we are focused on the path to first gas.

“Once completed, ANOH will provide two income streams for Seplat: wet gas sales from OML 53 to the gas plant and dividends from the joint venture ANOH Gas Processing Company, which will operate the plant.

 “ANOH’s gas will further reduce Seplat’s and Nigeria’s carbon intensity and increase energy supplied to the Nigerian domestic market.”