A Review of the Nigerian Energy Industry

NNPC kick-starts 7 gas projects to support 15GW power generation

*NNPC Towers, Central Business District, Garki, Abuja.

*Baru clears the air on Minna depot fire

OpeOluwani Akintayo

09 July 2018, Sweetcrude, Lagos — The NNPC has commenced the technical framing workshop and subsequent project signing of the 7-Critical Gas Development Projects, 7CGDP to deliver about 3.4 billion standard cubic feet of gas per day, bscfd to bridge the foreseen medium-term supply gap by 2020 on an accelerated basis.

The 7CGDP is an integral leg of the gas development strategy designed by the NNPC to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.

In a presentation at the event, Group Managing Director of the Corporation, Dr. Maikanti Baru, enthused that the projects would not only bridge the projected shortfall in supply upon completion but would also signal the beginning of the process of the closing demand-supply gap in the domestic gas market.

He said NNPC had engaged two World Class Project Management Consultants namely DeltaAfrik/Worley Parson & Crestech/Penspen who will work with NPDC and NNPC JV Partners and other stakeholders to achieve set project deliverables.

He listed some of the responsibilities of the project consultants to include: working with NNPC and partners to revalidate and carry out relevant technical studies to proposed development plans, provide financial advisory services for project funding/financing strategy and appraise the fiscal requirements for viability and advice on interventions that may be required.

The PMT are also expected to study and recommend fast-track tendering process for field development and project implementation, establish realistic cost benchmark(s) for identified projects and develop project schedules and cost estimates for the respective projects among others

Dr. Baru explained that in addition to the above, the NNPC Project Management groups would strengthen oversight function on the seven (7) critical gas development projects by ensuring prompt decision making and timely approvals in line with international best practices.

The NNPC GMD said the Corporation was working closely with other agencies like the Department of Petroleum Resources, DPR and the Nigerian Content Monitoring and Development Board, NCMDB, among others, to ensure timely approvals for the project and also ensure that lease renewals requests related to these projects were supported for renewals by the relevant agency.

Mr. Osagie Okunbor, Managing Director of Shell Petroleum Development Company, SPDC which is handling three out of the seven projects, pledged the commitment of the company to the successful execution of the 7CGDP, noting that Shell was fully aligned with Nigeria’s gas strategy and aspirations.

The highpoint of the event was the formal execution of an agreement for the development of the 6.4 trillion cubic feet unitized gas fields (Samabri-Bisseni, Akri-Oguta, Ubie-Oshi fields by NNPC/Shell and NAOC JV.

The 7CGDP include development of the 4.3 trillion cubic feet (TCF) Assa North/Ohaji South field; development of the 6.4 TCF Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7TCF NPDC’s OML 26, 30 &42).

Others include development of 2.2 TCF Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; cluster development of 5 TCF OML 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10 TCF Okpokunou/Tuomo West, OML 35& 62.

Meanwhile, the NNPC on Monday provided insight into the fire incident which ravaged parts of the PPMC Depot in Minna, Niger State.

Speaking to journalists on the sidelines of the 7CGDP launch in Lagos, the GMD said the fire incident which started late Saturday night after the collapse of the floating roof of one of the Petrol storage tanks had since been brought under control.

He thanked members of the neighbouring communities, the security agencies, and emergency services for their support and prompt response.

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