Tinubu Moves To Grow Nigeria’s Economy Through Gas

 

Nigeria's President Bola Tinubu is expected to inaugurate three critical gas infrastructure projects that are currently being undertaken by the Nigerian National Petroleum Company Limited (NNPC) and its partners in Delta and Imo States. 

These projects are seen as a significant step towards leveraging the country's abundant gas resources to grow its economy. The three projects include two in Imo and one in Delta and are aimed at increasing value from the nation's gas assets while simultaneously eliminating gas flaring. Upon inauguration, these projects are expected to boost gas supply to the domestic market by approximately 500 million standard cubic feet per day (mmscf/d). 


This will create a better investment climate and promote balanced economic growth cumulatively. The first project is the AHL Gas Processing Plant 2 (GPP-2) - 200mmscf/d, which is an expansion to the Kwale Gas Processing Plant (GPP-1). The GPP-1 currently supplies about 130MMscf/d of gas to the domestic market. 


The GPP-2 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 metric tonnes per annum (MTPA) of Propane and 100,000 MTPA of Butane, which will reduce the dependence 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 project scheduled for presidential inauguration is the ANOH Gas Processing Plant (AGPC) - 300MMscf/d. 

It 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, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis. 

The third project is the ANOH-OB3 CTMS Gas Pipeline Project, which involves the engineering, procurement, and construction of the 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 the OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system.

 About 600MMscf/d is estimated to be available from two separate 2x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV. The delivery of these 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. 

While the statement was silent on when the projects located in Kwale (Delta state) and Ohaji South (Imo state) will be inaugurated by the President, the 23.3km Anoh-OB3 PPL is scheduled for mechanical completion by May 15, 2024.

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