Tinubu Moves To Grow Nigeria’s Economy Through Gas

Nigeria President Bola Tinubu will soon inaugurate three critical gas infrastructure projects being undertaken by the Nigerian National Petroleum Company Limited (NNPC) and partners in Delta and Imo States in line with his commitment to significantly leverage gas to grow Nigeria’s economy.

The projects, two in Imo and one in Delta, according to a release issued on Friday by presidential spokesperson, Ajuri Ngelale,

support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring.

The delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity.

The statement, which was silent on when the projects located in Kwale (Delta state) and Ohaji South (Imo state) will be inaugurated by the President, however, said upon inauguration, the projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively.

The release listed the projects to include AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/d which is an expansion to the Kwale Gas Processing Plant (GPP – 1), which currently supplies about 130MMscf/d of gas to the domestic market. The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline. This additional gas supply will support further rapid industrialization of Nigeria. The plant will also produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG Imports. The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.

The 200mmscfd NNPC- AHL GPP2 has started injecting gas and scheduled to ramp up to 180mmscfd if not 200mmscfd by end of May, 2024.

The second project scheduled for presidential inauguration is ANOH Gas Processing Plant (AGPC) – 300MMscf/d which is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State. The plant will produce dry gas, condensate, and LPG. 

The gas from ANOH gas plant will significantly increase domestic gas supply, leading to increased power generation and accelerated industrialization. The ANOH Gas Plant is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.

AGPC (300mmscfd) has been mechanically completed since late December and in the process of finalizing pre-inauguratio activities.

The third project is the ANOH-OB3 CTMS Gas Pipeline Project which involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project. 

The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South (ANOH) primary treatment facility (PTF) to OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system. About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.

The 23.3km Anoh- OB3 PPL is scheduled for mechanical completion by  May 15, 2024.

Deji Elumoye in Abuja

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