Seplat Energy plans to set in motion by June 2022 its own share of the gas manufacturing project it jointly holds with the Nigerian Gas Company (NGC) in Assa North-Ohaji South, Imo State, which experts say ranks among the country’s biggest gas condensate development projects.
NGC is a subsidiary of state-owned Nigerian National Petroleum Corporation.
The first stage is to deliver 300,000 million standard cubic feet per day to the gas market in Africa’s largest economy, S&P Global Platts said in a report Thursday, citing Roger Brown, the oil driller’s chief, on the sidelines of Dubai-held Africa Oil Week.
“Our design as such we have a got a lot of land and we put the infrastructure in such a way that we can scale it,” Mr Brown said.
“It all depends on the demand. There is plenty of gas.”
At 25,000 barrels a day, Seplat also looks to produce condensate, a light liquid with close affinity to conventional crude oil and extracted while processing gas.
This February, Seplat said the joint venture also known as ANOH Gas Processing Company got funding in the sum of $260 million after a posse of seven domestic and foreign lenders united to bankroll the last phase of the project, which had earlier been financed by a partnership worth $420 million from the energy firm and the NGC.
Cash from crude oil sales still brings more than 80 per cent into the company’s earnings pool, according to data from its nine months to September financial statement.
READ ALSO: Seplat’s nine-month profit surges 141% on global oil rebound
But the broad global shift to cleaner energy and de-emphasis of hydrocarbons like petrol has spurred a fiercer push for gas production in Seplat, which this year dropped its previous moniker, Seplat Petroleum, for Seplat Energy in the spirit of the new wave.
“We see gas processing as a really great development for the country because it’s strategic for the government,” the CEO said
“Gas processing will then allow that gas to go to industrial zones but also into power, which will displace diesel.”
The company posted a jump of 141 per cent in after-tax profit for the first nine months of 2021 after turnover climbed to N182.7 billion from N135.6 billion.
Seplat is simultaneously listed on the London Stock Exchange as well as in Lagos.
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