A Review of the Nigerian Energy Industry

NPDC commences gas expansion projects to boost power generation

Kunle Kalejaye

15 January 2013, Sweetcrude, Lagos – To meet Nigerian government’s aspiration to boost power generation in the country, the Nigeria Petroleum Development Company Limited, NPDC, has commenced delivery of 65 million standard cubic feet per day of gas into domestic market from Oredo field in Oil Mining Lease, OML 111.

The 65MMSCF, the company said, is in response to the high demand for natural gas and is capable of generating about 260 megawatts of power into the national grid.

The Oredo Integrated Gas Handling Facility, IGHF, project is currently being executed by an indigenous contractor, Network Oil & Gas Co,mpany Limited.

According to a statement by the firm, the overall project completion is about 65 per cent and is expected to be ready for commissioning in 2013.

The GHF is located in Oredo Field (OML 111) approximately 35 kilometers south of Benin City in Edo State. The Oredo gas project is a 100MMSCFD capacity gas plant with fractionation and LPG dispensing units.

The statement explained that when the plant is completed by the third quarter of 2013, it will produce 100MMSCFD lean gas (West African Gas Pipeline specification) and 330 tonnes per day of Liquefied Petroleum Gas, LPG).

This, according to statement, will increase power generation and LPG utilisation in the country, which will reduce firewood and kerosene consumption, thereby contributing to a cleaner environment.

It was however reported that the problems affecting the smooth supply of gas to the old and new power plants in the country may continue until the Petroleum Industry Bill, PIB, currently before the National Assembly is passed into law and made operative.

It added that the PIB would address funding issues associated with the slow development of the country’s gas infrastructure, which is the backbone of the power agenda.

The bill when passed will also accelerate gas infrastructure development through private partnership with the divestment of about 49 per cent of the equity currently being held by the government to private participants in the National Gas Company, NGC.

In the post PIB era, the NGC is expected to pursue a vigorous domestic gas market and infrastructure development. It will be a full-fledged limited liability company with private sector participation.

However, NPDC said it has commenced another project which will deliver 100 MMSCFD of raw gas to Pan Ocean Oil Corporation, to utilise its spare capacity available in the Ovade Ogharefe gas plant in addition to the Oredo Gas Handling Facility.

With these projects, NPDC believes that gas flaring at its Oredo fields will be eliminated in line with the flare out directives of the Federal Government.

NPDC is the Exploration and Production subsidiary Company of the Nigerian National Petroleum Corporation, NNPC. The company currently produces about 130,000 Barrels of Oil per day and 400 MMSCFD of gas from its various operated assets.

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