Ongoing efforts by the President Bola Ahmed Tinubu administration to support the growth of the Nigerian economy through stimulating continuous investment in the oil and gas industry received a major boost during the week with a commitment by the NNPC-SPDC Joint Venture to take the Final Investment Decision (FID) on the Iseni Gas Project.
This will see the building of a dedicated upstream facility to supply 100 million standard cubic feet of gas per day (MMSCF) to the domestic market for 10 years.
According to the Chief Corporate Communication Officer of the Nigerian National Petroleum Company Limited (NNPCL), Olufemi Soneye, once completed, the additional gas volumes supplied to the domestic market would also translate into significant foreign exchange savings for the nation.
In a chat with journalists, Soneye expressed optimism that with this development, NNPCL is poised to sustain the momentum and finalise terms with partners for other upstream gas development projects.
He noted that adding 100 MMSCF of gas per day to the domestic market translates into feedstock capable of generating 400 Mega Watts (MW) of electricity or 1.5 Metric Tonnes Per Annum (MTPa) of Urea.
Based on the agreed structural design, the project, he said, would flow gas from the prolific Iseni wells through a dedicated 24” X 50km pipeline from Iseni into NAG 3 Gas Plant to be constructed at Utorogu.
He added that the gas would then be processed and injected into the Escravos-Lagos Pipeline System (ELPS) to the domestic market.
Soneye stated that this milestone was enabled by the strong collaboration and support for the joint venture from the Federal Government and NNPCL under the strategic leadership of the Group Chief Executive Officer (GCEO) and guidance of Mr. President.
“Nigeria’s gas reserve is estimated at 206 Trillion Cubic Feet (TCF), and with adequate and consistent investment in the gas value chain, Nigeria could become Africa’s gas powerhouse.”
“There is palpable enthusiasm that the FID is a positive signal for the industry and inches the NNPCL-led JV towards the commencement of project activities that will have ripple effects on the economy by creating direct and indirect employment,” he said.
Soneye added that this is just one in a series of efforts President Tinubu has instituted in the energy sphere and which is being driven by the NNPCL team led by Mele Kyari as a show of commitment to enhance the standard of living of Nigerians.
