Seplat to increase its gas processing capacity

Natural Gas Plant - Armchoir - Wikimedia CommonsSeplat expects Nigeria's natural gas production to reach 7.3 bcf per day. (Image source: Armchoir/Wikimedia Commons)London-listed Seplat Petroleum Development Company (SPDC) has stated that it will expand its Nigerian gas processing capacity by more than 60 per cent

Speaking at the conference of the Nigeria Council of the Society of Petroleum Engineers (SPE) in Lagos, the CEO of Seplat, Austin Avuru said that when his company inherited assets from Shell in 2010, the installed gas processing capacity was 120 mcfd, while actual delivery was only 60 mcfd.

“We came in, inherited these facilities and set out to expand these facilities because we saw a future in gas three years ago, before people saw it. Today, we have revamped the existing 120-130 mcfd and have built new 150 mcfd. Today, our total processing capacity is 300 mcfd, but we are actually delivering between 240-280 mcfd into the domestic market,” he said.

Avuru also spoke about the second phase of the company’s gas project, wherein the company will add another 225 mcfd processing capacity. That will bring the company’s processing capacity to more than 500 mcfd by the end of 2017.

He added that if Nigeria achieves 1.2mn bpd crude oil refining capacity in addition to a natural gas production of about 7.3 bcf per day, it will translate to about 32,000MW of power which will enable the country to “become a massive exporter of cement, fertiliser, and petrochemical products.”

Avuru also called on the Nigerian National Petroleum Corporation (NNPC) to sell all its four refineries.

“Nigeria can easily achieve a refining capacity of 1.2mn bpd if Dangote’s 600,000 bpd refinery comes online in addition to the 445,000 bpd nameplate of all the NNPC refineries, which if sold to competent hands will achieve its optimum production capacity,” Avuru said.

Speaking at the same conference, Joseph Dawha, the outgoing group managing director of NNPC, said that one of the challenges of the oil sector in recent years is the high incidence of crude oil theft, which he put at about 250,000 bpd. He stated that public enlightenment on the negative impact of crude oil theft on the economy should be embarked on in addition to the enforcement of anti-sabotage laws to deal with the situation.

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