Chineme Okafor in Abuja
The Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Development Company Plc have signed five agreements to develop a gas production project aimed at delivering about 3.4 billion standard cubic feet of gas per day (bscfd) by 2020, a statement from the corporation has disclosed.
The statement explained that the new gas project was part of efforts by the NNPC to bridge the projected medium-term gas supply gap expected in Nigeria by 2020.
NNPC Group General Manager, Public Affairs, Mr. Ndu Ughamadu, said in the statement that the project called Assa North and Ohaji South (ANOH) gas development scheme was one of the Seven Critical Gas Development Projects (7CGDP) that would boost gas production and infrastructure development in the country.
The statement quoted NNPC Group Managing Director, Dr. Maikanti Baru, as saying that a special purpose vehicle known as ANOH Gas Processing Company (AGPC) was being promoted by both parties to develop, build, operate and maintain the ANOH gas processing plant, with an initial capacity of 300 million standard cubic feet per day (mmscf/d) of gas in Imo State.
According to him, NNPC would do everything possible to ensure that the project was successfully delivered on schedule within budget and to specification.
He stated that the project was designed as a world-class gas processing plant with the capacity to deliver up to 3.4 bscf of gas daily.
“Following the execution of Heads of Terms (HoT) by the Nigerian Gas Processing and Transportation Company (NGPTC) on behalf of the NNPC, Seplat and AGPC on December 19, 2017, the steering committee for the AGPC project has provided the leadership and broad guidance for the development and finalisation of the various commercial agreements required to underpin the project,” Baru said in the statement.
Similarly, the statement quoted the Chief Executive Officer of Seplat, Mr. Austin Avuru, to have described the ANOH gas processing plant as a landmark project which captures the essence of the gas infrastructure development initiative of the federal government.
Avuru expressed confidence that the AGPC would deliver on the project within the next 18 months and achieve its objective of being a key gas supplier to both the domestic and export market.
According to the statement, the MoU signed in this regards included the AGPC shareholders agreement among AGPC, NGPTC and Seplat; AGPC share subscription agreement between AGPC, NGPTC and Seplat; Wet Gas Sales and Purchase Agreement between NNPC, Seplat and AGPC; Gas Sale and Purchase Agreement between AGPC and Nigerian Gas Marketing Company (NGMC), and Gas Marketing Agreement between AGPC and NGMC.