In spite the challenging economic climate, the Nigerian Petroleum Development Company Limited (NPDC) is set to commission its second 100 million standard cubic feet of gas per day (MMscfd) Gas Handling facility (GHF) in Oredo.
The Manager Director, Mr. Yusuf Matashi disclosed this recently during his tour of the Oredo Field. He also revealed that after the commissioning, NPDC will be delivering 100MMscfd to Pan Ocean Oil Company (POOC) for power generation and other industrial uses. This will bring the total gas to be supplied by NPDC from Oredo Field to the domestic market to 200MMscfd.
“This is a practical demonstration of the company’s commitment towards improving its gas production capabilities with a view to meeting the increasing need for gas in the domestic market, especially the Independent Power Projects and other sectors who heavily depend on gas supplies”, the MD said.
According to Mr. Matashi, Pan Ocean Oil Company has a 130MMscfd capacity Gas Handling Facility near the Oredo field. However, the current gas production from the POOC Gas Plant is 32MMscfd which is far less than the plant capacity and her domestic supply obligations.
The Oredo Gas to POOC project is the newest of NPDC facilities in its OML 111 field after the Early Processing Facility (EPF), GHF I and the old flowstation. It should be noted that the gas supply to POOC facility was not originally in the plan. However the responsibility to explore the field was thrust on NPDC by the Federal Government as part of efforts to stimulate the gas market in Nigeria and make the product readily available for domestic consumption. This will further harness the Oredo field which is blessed with abundance of gas deposits.
The NPDC gas project is indeed a strong demonstration of the company’s capability to play a leading role in actualizing the Federal Government quest of monetizing natural gas endowment through gas-to-power and other related opportunities in the Gas Sector.
Evidently, the completion of the Oredo gas project represents a major milestone for NPDC which is the flagship of the Nigerian National Petroleum Corporation (NNPC). It is also a major step forward for the Federal Government’s gas-to-power initiatives.
Following the completion of the Oredo plant, NPDC’s position as one of Nigeria’s major gas supplier to the domestic gas market has now been consolidated. Apart from making the company, the second largest producer of gas in Nigeria, it also increases its revenue base.
Though NPDC has since its inception witnessed significant growth and development, the Integrated Gas Handling Facility (IGHF) (which is made up of GHF I and GHF II) is unique and very dear to the NNPC because of its strategic importance to the realization of its growth plan of being an integrated oil and gas company.
The IGHF which has 100 per cent local content in both design and construction also possesses the capacity to eliminate gas flaring in the Oredo field in compliance with the Federal Government environmental requirements.
Mr. Matashi who was accompanied on the tour by the General Manager Legal, Company Secretary and Legal Adviser (CSLA), Mrs. Onikepo Animashaun also noted that the completion of the Oredo plant shows Government understanding of NPDC’s role within the economy. It also underscores the critical need for more indigenous participation in the business of exploring and producing oil and gas in the country.
Meanwhile, in addition to the Oredo Gas supply to POOC for power generation NPDC is also vigorously pursuing the obligation to produce 330 Tonnes/day (equivalent of fifteen (15) trucks per day) of Liquefied Petroleum Gas (LPG) for Nigeria’s domestic market; about 345 Tonnes/day of propane for the local industries and export as well as about 2600bpd of stabilized condensates for spiking.