Tinubu set to commission three critical gas projects to boost economic growth

Adebari Oguntoye
Adebari Oguntoye
Gas projects

In a significant move to leverage gas for economic growth, President Bola Tinubu is expected to commission three critical gas infrastructure projects soon.

According to a statement on Friday by Special Adviser to the President on Media and Publicity, Ajuri Ngelale, the gas projects were undertaken by the Nigerian National Petroleum Company Limited (NNPCL) and some partners.

President Tinubu had identified Nigeria as more of a gas-resource nation than petroleum-rich, indicating his administration’s interest in exploiting the huge gas reserve available to boost the economy.

Nigeria’s gas reserves, put at about 208.83 trillion cubic feet, account for 33% of Africa’s gas reserves.

The projects, aimed at growing value from the nation’s gas assets and eliminating gas flaring, are slated to increase domestic gas supply, promote industrialization, and create a better investment climate.

The projects include the AHL Gas Processing Plant 2 (GPP-2), the ANOH Gas Processing Plant (AGPC), and the ANOH-OB3 CTMS Gas Pipeline Project.

The AHL Gas Processing Plant 2 (GPP-2) in Kwame, Delta State, will process 200 MMscf/d of rich gas and deliver lean gas to the domestic market, supporting rapid industrialisation. The plant will also produce 160,000 MTPA of propane and 100,000 MTPA of butane, reducing dependence on LPG imports.

The ANOH Gas Processing Plant (AGPC) will process non-associated gas from the Assa North-Ohaji South field in Imo State, producing dry gas, condensate, and LPG.

This will significantly increase domestic gas supply, leading to increased power generation and accelerated industrialization.

The ANOH-OB3 CTMS Gas Pipeline Project will evacuate dry gas from the Assa North-Ohaji South primary treatment facility,  also in Imo State, to OB3 Custody Transfer Metering Station for delivery into the OB3 pipeline system.

“This project is an expansion to the Kwale Gas Processing Plant (GPP-1), which currently supplies about 130 m3/d of gas to the domestic market. The processing plant is designed to process 200 MMscf/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 ANOH gas plant 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 the 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.

“The project involves the engineering, procurement, and construction of the 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 the OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system. About 600 MMscf/d is estimated to be available from two separate 2 x 300 MMscf/d capacity gas processing production trains from AGPC & SPDC JV.

“When commissioned, the projects will increase gas supply to the domestic market by approximately 500 mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively,” it added.

Providing additional updates on the state of the three projects, Negelale said “the 200mmscfd NNPC-AHL GPP2 is already injecting gas as we speak and is scheduled to ramp up to 180mmscfd, if not 200mmscfd, by the end of May.

“AGPC (300mmscfd) has been mechanically completed since late December and is in the process of finalizing pre-commissioning activities,” he added, adding that “the 23.3km Anoh-OB3 PPL is scheduled for mechanical completion by May 15th.”.

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