gas plant picSuccour may have come the way of the power producers who have been severely hit by gas shortage, as a consortium of oil firms floats a new gas processing facility in Eket, Akwa Ibom state.

The multi-billion naira gas processing facility, built by  Seven Energy and Frontier Oil Limited Joint Venture (JV), is estimated at about $500 million (about N80 billion), with capacity to ease-off about 10 per cent of gas-to-power challenges in the country.

The Project Director, Uquo Gas Processing Plant, Alhaji Abdullah Bukar, told The Guardian on Monday, that the gas facility was built at the best international standards, and has product quality of up to 98 per cent methane and lower than 2 per cent CO2 (carbon dioxide).

According to him, the plant has 200 million cubic feet per day (mmcfpd) processing capacity with two modules operating at 100 (mmcfpd) each, and also 2,000 barrels per day of oil.

“The facility is fed from the Uquo oil field located in Oil Mining Lease 13 (OML 13), about 10 kilometer north of Exxon Mobil Qua Iboe Terminal in Eket”, he added.

Bukar said the plant is poised to boost the industrial development in that axis and ultimately add multiplier effect to the domestic economy.

“The plant is already supplying products to two off takers (Ibom Power Plant and the Calabar National Integrated Power Plant), but there are much more capacity to take up new investors that may require gas for smooth operations”, he noted.

The plant, according to Bukar, is ready for commissioning, while plans are also in top gear to establish additional $100 million (about N16 billion) pipeline network from Uquo to Oron.

He said Acugas, its downstream subsidiary has built a 62 kilometers pipeline from Uquo to Ikot Abasi, which will deliver gas to the 190Mega Watts (MW) Ibom Power station, adding that another 37 kilometers pipeline from Uquo to Oron is under construction to supply gas to the 560MW Calabar National Integrated Power Plant (NIPP).

“When these deliveries are taking place, Acugas will be supplying gas to provide 750MW of electricity generation capacity at the Ibom Power and Calabar power stations, equivalent to some 10 per cent of Nigeria’s current generating capapcity,” he said

The Uquo-Oron pipeline is expected to be completed by June 2014, while provisions have been made for expansion of the network to reach new demand centers.

He explained that the company had signed a 10-year take-or-pay Power Purchase Agreement for 43.5mmcfpd with Ibom power station; and 20-year take-or-pay contract for 131mmcfpd with Calabar NIPP.

Seven Energy Group is an indigenous oil and gas exploration, development and production company that comprises, Seven Energy, Septa Energy and Acugas).

Applauding the Federal Government’s gas master plan, he said the company is planning to expand its market scope to cover Port Harcout and Abia, as well as develop Compressed Natural Gas (CNG) and Floating Liquefied Natural Gas (LNG) capability.


Information from The Guardian was used in this report.