Chief Operating Officer of Seplat Energy, Samson Ezugworie, has said that the company is set to increase its gas production capacity by an additional 390 million standard cubic feet (MMSCF) by the end of the year.
Ezugworie held on the sidelines of the Oil Technology Conference (OTC) in Houston, Texas, on Wednesday.
The forum’s theme was: “The Future of Energy Transformation in Africa: Clean Energy and Business Sustainability.”
He stated that the additional 390 MMSCF of gas would be added to the current 460 MMSCF per day, bringing the total to 850 MMSCF per day by the end of the year.
According to the COO, the company is currently producing 460 MMSCF of gas per day but plans to ramp up production to 850 MMSCF per day by the end of the year when the Assa North Ohaji South (ANOH) and Sapele Gas Plants come on stream.
He emphasized that the entire 850 MMSCF of gas would be dedicated to the domestic gas market to support economic growth.
He further explained that injecting 850 MMSCF of gas would significantly address issues surrounding gas-to-power, as gas produced from the Oben gas plant feeds directly into the national grid, thereby boosting power generation capacity.
On the issue of gas pricing and debt, the Seplat boss noted that this remains a significant issue in the industry, discouraging most International Oil Companies (IOCs) from investing in gas.
He explained that this was because pricing needed to be properly addressed while, on the other hand, the growing debt for gas produced was a significant disincentive, making it a less profitable business.
He said the piling debt for gas produced was a major disincentive, making it a less profitable business.
Data from the Nigerian Liquefied Petroleum Gas Association (NLPGA) shows that Nigeria has a gas reserve of 209.5 trillion cubic feet, making it the world’s ninth-largest gas producer and Africa’s gas powerhouse.
