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Power generation drops as Seplat Petroleum shuts down Oben Gas Plant

By on February 26, 2015

Electricity generation in the country has dropped as Seplat Petroleum Development Company Plc shuts down the Oben Gas Plant, a joint venture between the company and the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The 10-day long shut-down, which will enable the company to tie in its expansion unit with the existing plant, will reduce gas supply to the country’s power generating plants by 135 million standard cubic feet of gas per day (MMSCF).

Though different power generating plants consume gas at different rates, THISDAY gathered that 135mmscf per day generates an average of 528 megawatts of power.

Before the shut-down, power generation hovered around 3,800 megawatts, due to persistent acts of vandalism on the gas supply pipelines.

The Chief Executive Officer of Seplat Petroleum, operators of NPDC/Seplat Joint Venture, Mr. Austin Avuru, said in a statement Tuesday that the shutdown, which will end by March 5, will  enable the company to tie in its newly installed, 2 x 75 mmscf/d unit into the company’s existing gas plant.

“Post tie-in operation, SEPLAT will have a single homogenous plant consisting of 2 by 45 MMSCF and 2 by75 MMSCF trains and will be able to deliver 240MMSCF/D WAGP (West African Gas Pipeline) specification gas post-commissioning, from the Oben node. This facility expansion and upgrades will bring the company’s overall daily gas production capacity to slightly over 300mmscf/d,” he said.

Avuru further stated that during the shutdown, Seplat’s current daily production of 135MMSCF, from Oben node will“not be available, however, the company will maintain gas availability of 60mmscf daily from its Sapele node.”

According to him, the shut-down provides the company an opportunity to enhance its current gas delivery into the national gas grid.

He added that this achievement aligns with Seplat’s short to medium term domestic gas commercialisation strategy, while facilitating greater power generation in the country.

SEPLAT recently signed Memorandum of Understanding (MoU) with the Ministries of Petroleum Resources and Power, in conjunction with the Central Bank of Nigeria (CBN) and the National Electricity Regulatory commission (NERC) as well as NNPC, and Gas Aggregation Company Nigeria Limited for gas supply.

Avuru noted that: “The company’s investment to develop its gas infrastructure buttresses our commitment to boost gas supply to the Nigerian Electricity Supply Industry (NESI) and support the Federal Government’s commitment to the reform of the Power Sector.”

According to him, improved gas production enables the company meet its obligations and achieve its short to medium term gas objectives.

 

[ThisDay]