Electricity Power Generation of 1,200MW by Seplat’s ANOH Gas Project in Nigeria
In Nigeria, Seplat Petroleum Development Company Plc has said
the Assa North-Ohaji South (ANOH) gas and condensate processing plant in Imo
State slated to start operations in 2021, will further increase power
generation in Nigeria by over 1,200 megawatts.
The General Manager, Gas at Seplat, Mr. Okechukwu Mba, revealed
this at the Nigerian International Petroleum Summit (NIPS) 2020 held in Abuja.
Speaking during a panel session dubbed: ‘Charting the Way
Forward for Gas’ the Seplat GM said strategically the company is positioned to
access Nigeria’s main demand centres, adding that current well stock delivering
was around 300 Million standard cubic feet per day (Gross).
With over $300m invested in Oben Gas Plant Expansion Project,
which is another gas plant run by Seplat, he said the company currently
contributes about 30 per cent of gas to
power generation in Nigeria, adding that: “ANOH project has the capacity to
unlock over 1,200MW of gas constrained power generation capacity.”
However, despite the huge gas reserves, the country has been
unable to translate its resources to effectively boost the economy., he said.
Mba listed key challenges of the sector to include lack of
adequate infrastructure (constraint on gas transmission distribution); funding
constraints for upstream, midstream and downstream sectors; and sub-optimal
institutional and regulatory framework including extensive and bureaucratic
process for obtaining licenses and approvals, weak corporate governance and
policy inconsistencies.
Again, he said uncertainties around changes in fiscal
framework, local community crisis, mismatch in currency (gas revenue in Naira
versus costs in United States Dollar), and Domestic Supply Obligation (DSO) gas
pricing constraints were prevailing trials.
The Seplat GM said growth in gas demand was widespread,
increasing in some countries and regions; of which the increase is driven in
broadly equal amounts by use in power and industry.
He said: “Africa’s natural gas production, demand and exports
are poised to accelerate, led by Mozambique, Nigeria and Egypt. Gas is the only
fossil fuel expected to grow through 2035. Global gas demand is expected to
grow at 0.9% per annum between 2018 – 2035 driven by many regions’
power/gas-intensive industry and China’s residential/commercial sectors citing
McKinsey report, 2019.
“The continent can fuel economy four-times larger than today
with only 50% more energy driven by a major shift towards energy sources such
as renewables and natural gas and efficiency developments.
“Stated Policies Scenario reflects the impact of existing
policy frameworks and today’s announced policy intentions. The aim is to hold
up a mirror to the plans of today’s policy makers and illustrate their
consequences for energy use, emissions and energy security~.
The Africa Case Scenario, he noted, was built on the premise
of “Agenda 2063”, established by the Heads of State and Governments of the
African Union in 2015, and “in this case, faster economic expansion is
accompanied by the full achievement of access to electricity and clean cooking,
in line with Sustainable Development Goal 7.”
Mba said Nigeria could save significantly on CO2 emissions by
replacing diesel generators with natural gas plants – potentially reducing CO2
emissions by 18.2 million metric tonnes per year, adding that this would in
turn improve standard of living of Nigerian citizens through reduced exposure
to Greenhouse Gas and noise pollution from generators.
“Natural gas is a cleaner fossil fuel and as such can help
Nigeria achieve her developmental aspirations by increasing power generation
efficiently with relatively low climate damage thus delivering a win-win
scenario,” he stated.
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