(3 minutes read)
- Seplat Energy will have by June 2022 its own gas extraction. This will be a joint project with the Nigerian Gas Company (NGC) in Assa North-Ohaji South, in Imo State
- Analysts say the project will rank among the country’s biggest gas condensate development projects
- NGC is a subsidiary of state-owned Nigerian National Petroleum Corporation
Seplat Energy will have by June 2022 its own gas extraction. This will be a joint project with the Nigerian Gas Company (NGC) in Assa North-Ohaji South, in Imo State. Analysts say the project will rank among the country’s biggest gas condensate development projects. NGC is a subsidiary of state-owned Nigerian National Petroleum Corporation.
In the first stage, the project will deliver 300,000 million standard cubic feet per day to the gas market in Africa’s largest economy. S&P Global Platts said in a recent report about this development citing Roger Brown, the oil driller’s chief, on the sidelines of Dubai-held Africa Oil Week. The site, Brown said, has plenty of oil and the infrastructure can be laid in such a way that the production can be scaled up depending on the demand. Demand, he opined, is an important factor that would decide the future of the project.
At 25,000 barrels a day, Seplat also looks to produce condensate, which is a light liquid with close affinity to conventional crude oil and extracted while processing gas. Seplat which is also known as ANOH Gas Processing Company got funding to the tune of US$260 million after a posse of seven domestic and foreign lenders united to bankroll the last phase of the project. Earlier, the project has been financed to the tune of US$420 million by the energy firm and the NGC. Seplat’s more than 80% of the earnings come from sale of crude oil. What motivated Seplat to move towards gas is the global shift to cleaner energy and de-emphasis of hydrocarbons like petrol.
