The Honourable Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, recently declared that the Nigerian Petroleum Development Company Limited (NPDC) has joined the league of major gas suppliers to the domestic market in Nigeria.
Mrs. Alison-Madueke made this pronouncement while commissioning the Early First Gas Phase of the Integrated Gas Handling Facility (IGHF) in Oredo Field, Edo State.
She said: “It is of interest to note that NPDC is now the major gas supplier to the nation’s domestic gas market with the current supply of approximately 400MMSCFD and expected growth to 600MMSCF by the end of this year”.
According to the Minister, the early first gas phase is currently delivering 45MMSCFD to the Ihovbor Independent Power Plant (IIPP) and the remaining 20MMSCFD to the domestic market for other users through the Escravos-Lagos Pipeline System (ELPS).
She reiterated that the NPDC gas project is an eloquent demonstration of the company’s capability to take a leading role in actualizing the Federal Government quest of monetizing natural gas endowment through gas-to-power and other gas related industrialization, thus increaseing power supply to the country.
Mrs. Alison-Madueke further admitted that the Federal Government recognizes NNPC key role in the country’s economy saying that it was the critical need for increased indigenous participation in the oil and gas business that elicited the assignment of a number of assets to NPDC over the last few months.
Meanwhile to ensure profitable gas development, the HMPR also disclosed that the Federal Government has established the Gas Aggregator Company of Nigeria which will primarily act as a market place that would bring together buyers and sellers of gas.
She hopes that when the IGHF is completed by the fourth quarter of 2013, NPDC would be able to deliver 100 MMSCFD of lean gas to Ihovbor Independent Power Plan (IIPP) and the domestic markets; another 100 MMSCF of raw gas per day to Pan Ocean Gas Plant and about 330 tones of LPG per annum to the domestic market.
In his remarks, the Group Managing Director of NNPC, Engr. Andy Yakubu disclosed that the corporation was pursuing with vigor the development of more resources in order to provide more gas to the Pan Ocean Oil Company Limited to optimize the utilization of the Pan Ocean gas plant.
Apart from its capacity to process 100MMSFCD with the model for LPG production and other liquid extraction facility, the GMD mentioned that the gas project in its entirety was a case of value addition in the sense that it will improve power supply to Nigerians, generate employment opportunities as well as eliminate gas flaring in compliance with government environmental requirements.
He said “this will require drilling more wells, construction of manifolds and flow line 22 km pipeline and separators. These activities will come a long way with related business and employment opportunities”.
“I’m glad to state that NPDC has commenced drilling another well to deliver 100mmsfcd of raw gas through the Pan Ocean gas plant. I also understand that line pipes have been procured and that they are now in Port Harcourt, Right of Way had been acquired, Front End Engineering will be completed by 2013 and contracting process to execute the project would soon be completed”.
He reaffirmed that the commissioning of the IGHF was unique to the NNPC family as it was not just the first major gas development project carried out by NPDC towards the realization of its growth plan of becoming an integrated Oil and Gas Company but also a symbolization of NNPC rapid response to the Federal Government gas-to-power initiatives.
Engr. Yakubu further attributed the current increase in production from Oredo field from 1,000 barrels of oil per day (bopd) to about 6,000 bopd to recent interventions under the dynamic leadership of the HMPR adding that the Corporation aspires to “make Oredo the hop of NNPC/NPDC Oil and Gas operations”.
The NNPC boss, who proudly announced that the Oredo Gas Project was one hundred per cent designed and constructed by Nigerians, also reiterated the Corporation’s unwavering obligation towards the actualization of the Federal Government’s intention to make power available to all Nigerians.
Speaking earlier, the Managing Director of NPDC and host, Mr. Iyowuna Briggs assured the Federal Government of the company’s responsibility to perform to its expectations. He said:
“We at NPDC will like to give the HMPR comfort that NPDC will not only meet the 200 MMSCFD from OML 111 but will also be able to sustain production for the next 20 years based on existing reserves. We would like to express our gratitude to the FG for this administration unflinching support to NPDC. We would also like to thank you immensely for your belief in the Nigerian project which has made all these possible. Thanks to you HMPR, NPDC’s Oil & Gas reserves have increase 400%”.
According to the MD, the gas development project is in two phases. The first phase is the delivery of 100MMSCFD pipeline specifications (WAGP) and is expected to be completed by the fourth quarter of 2013. The second phase is the Fractionation and LPG dispensing facility that would produce about 330 tonnes of LPG and 345 tonnes of propane. This will also be completed by the fourth quarter of 2013.
Mr. Briggs also revealed that the company has rolled out plans to increase its drilling campaigns in order to realize its ministerial obligation of supplying 100 MMSCFD of raw gas to the Pan Ocean Gas Plant.
“By the end of 2013, a total of 4 drilling rigs: one offshore, two on land and one on swamp will be working for us. We are set to meet the target that you have set for us of attaining 250,000 boepd by 2015”.