NNPCL AND THE GAS REVOLUTION
The national oil company is working hard to significantly increase the country’s gas production capacity, contends AUGUSTINE AVWODE
Not many people know that Nigeria has begun a steady march to a gas revolution and that the Nigerian National Petroleum Company Ltd (NNPCL) is at the forefront of what promises to be a master key to a sustainable clean energy usage both for domestic and industrial purposes in the country.
Feelers from the seat of power indicate that any moment from now, President Bola Ahmed Tinubu will commission three gas infrastructure plants aimed at leveraging gas to grow the nation’s economy.
The gas infrastructure is located at Kwale in Delta State, Ohaji Egbema in Imo State and Obolo in Akwa Ibom State. Findings reveal that the three have a combined capacity estimated to increase domestic power supply, enhance power generation and accelerate industrialization.
This interesting development can only be explained in the light of President Tinubu’s commitment to significantly leverage gas to grow the economy. The three critical gas infrastructure projects to be commissioned by President Tinubu are being undertaken by the NNPCL and partners.
Importantly, the projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring. The delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity.
The projects lined up for commissioning include:
One, AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/d. This project is an expansion to the Kwale Gas Processing Plant (GPP – 1), which currently supplies about 130MMscf/d of gas to the domestic market. The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline. This additional gas supply will support further rapid industrialization of Nigeria. The plant will also produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG imports. The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.
The second one is the ANOH Gas Processing Plant (AGPC) – 300MMscf/d. The ANOH gas plant is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State. The plant will produce dry gas, condensate, and LPG. The gas from ANOH gas plant will significantly increase domestic gas supply, leading to increased power generation and accelerated industrialization. The ANOH Gas Plant is being developed by ANOH Gas Processing Company, also ban incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.
The third is the ANOH-OB3 CTMS Gas Pipeline Project. The project involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project. The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South (ANOH) primary treatment facility (PTF) to OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system. About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.
The good thing is that when commissioned, these critical projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth.
The journey to today actually began way back in 2019 by the NNPCL and its partners who are determined to redirect the energy protocol of the country in a significant way from premium motor spirit, popularly called petrol, to gas.
With the coming on stream of the various infrastructure which are said to be already up and running, the national oil company will significantly increase the country’s gas production capacity by almost double of what is currently obtained.
Three things are the main focus of the current effort. These are to significantly improve supply for domestic consumption, in other words, with time he prices or of the commodity would come crashing down; enhance power generation across the country and accelerate industrialization.
With this latest development, the use of Compressed Natural Gas (CNG) vehicles is certain to increase. The first obvious reason is the fact that it is a popular alternative fuel for vehicles becoming increasingly acceptable and are gaining traction these days because of their environmental and economic benefits.
CNG is a clean-burning fuel that produces lower emissions than traditional gasoline or diesel, and it can also be less expensive to use. Some of the advantages of CNG include the fact that when burned, it produces significantly lower levels of carbon monoxide, nitrogen oxides, and particulate matter. This makes it a more environmentally friendly option for vehicles.
CNG is often less expensive than gasoline or diesel, which can result in significant cost savings for drivers and fleet operators. The cost of CNG can vary depending on location and supply, but in many cases, it is considerably cheaper than traditional fuels.
And because CNG is domestically produced, this can improve energy security and reduce reliance on foreign oil. This can also reduce the impact of fluctuations in global oil prices.
It is in a new dawn, as it were, for the natural gas sub sector of the Nigerian oil and gas sector. It is in the light of the foregoing, therefore, that one cannot but applaud the visionary and courageous steps being taken by the NNPCL to redirect the oil and gas industry in Nigeria for maximum benefit for all.
Avwode is
MD/EDITOR-IN-CHIEF,
GRANDNEWS ONLINE
