Seplat Energy’s Chief Operating Officer, Samson Ezugworie, has announced plans for the company to significantly ramp up its gas production capacity.
Speaking on the sidelines of the Oil Technology Conference in Houston, Texas, Ezugworie revealed that Seplat aims to increase its gas production by an additional 390 million standard cubic feet by the end of the year.
The theme of the OTC forum was “The Future of Energy Transformation in Africa: Clean Energy and Business Sustainability.” According to Ezugworie, the planned increase in gas production will see the company’s output rise from the current 460 MMSCF per day to a total of 850 MMSCF per day.
This boost in production is expected to come from the Assa North Ohaji South and Sapele Gas Plants, which are set to come online by the end of the year.
Emphasizing the company’s commitment to the domestic gas market, Ezugworie stated that the entire 850 MMSCF of gas will be dedicated to supporting economic growth within the country.
Ezugworie highlighted the significance of this increase in addressing issues surrounding gas-to-power, noting that gas produced from Seplat’s Oben gas plant directly contributes to the national grid, thereby enhancing power generation capacity.
Regarding challenges such as gas pricing and debt, Ezugworie acknowledged their impact on the industry, particularly for International Oil Companies (IOCs). He explained that addressing pricing concerns and managing debt accumulation are crucial for ensuring the profitability of gas investments.
However, Ezugworie expressed confidence in Seplat’s strategy and foresight, noting plans to transition to interruptible gas supply and willing buyer willing seller contracts. Additionally, the company is implementing payment structures to manage outstanding debts and prevent future accumulation.
Despite the delicate balance between contributing to national growth and maintaining profitability, Ezugworie emphasized Seplat’s commitment to addressing these challenges and maximizing its contribution to the country’s economic development.
In related developments, data from the Nigerian Liquefied Petroleum Gas Association underscores Nigeria’s significant gas reserves, positioning it as a key player in the global gas market. The Nigerian National Petroleum Company Limited also aims to further capitalize on the country’s gas potential, with plans to increase natural gas reserves to 600 trillion cubic feet.
