As part of the efforts to boost the gas-to-power aspiration of the Federal Government, the Nigerian Petroleum Development Company (NPDC) Limited, a subsidiary of the Nigerian National Petroleum Corporation (NNPC) has commenced the delivery of 65million standard cubic feet of gas per day (mmscf/d) from the Oredo Field in Oil Mining Lease (OML) 111 into the domestic market.
A top official of the company, who confirmed this development during the weekend, stated that the 65mmscf/d was equivalent to a generating capacity of 260megawatts of electricity.
“On November 24, 2012 the NPDC commenced delivery of 65 million standard cubic feet per day of gas into the domestic market from Oredo field in OML 111. The 65mmscf/d of gas is capable of generating about 260 megawatts of electricity,” he said.
He disclosed that the Oredo Integrated Gas Handling Facility (IGHF) project was being executed by an indigenous contractor, Network Oil & Gas Company Limited.
The official further stated that the project, which is at about 65 per cent completion, would be ready for inauguration in 2013.
The GHF is located in Oredo Field in OML 111 , which is approximately 35 kilometers south of Benin City in Edo State.
The Oredo gas project is a 100mmscf/d capacity gas plant with fractionation and Liquefied Petroleum Gas (LPG) dispensing units.
When the plant is completed by the third quarter of 2013, it will produce 100mmscf/d Lean gas - West African Gas Pipeline specification and 330 tonnes per day of LPG. This is expected to boost power generation and LPG utilisation in the country, which will no doubt reduce firewood and kerosene consumption, thereby contributing to a cleaner environment.
In addition to the existing Gas Handling Facility, NPDC has commenced another project which will deliver 100mmscf/d of raw gas to Pan Ocean Oil Corporation to utilise its spare capacity available in the Ovade Ogharefe gas plant.
With these projects, gas flaring at NPDC Oredo fields will be eliminated in line with the flare out aspiration of the federal government.
NPDC is the Exploration and Production (E & P) arm of the NNPC, currently producing about 130,000 barrels of oil per day (bpd) and 400 mmscf/d of gas from its various operated assets.