OB3 delay undermines domestic gas supply as Seplat delivers ANOH project

Oil and gas giant, Seplat

Delays by the Nigerian National Petroleum Company Limited to deliver the Obiafu-Obrikom-Oben (OB3) pipeline project may push Seplat to export more gas with the breakthrough at the ANOH gas project.

While the gas was originally meant to be pushed into the Nigerian economy through the OB3 project, the 2014 project remained elusive, forcing operators like Seplat to prioritise alternative evacuation.

While Seplat, a Nigerian and London-listed company, announced that the 300 million standard cubic feet ANOH gas project achieved first gas following the activation of four upstream wells, which had been on standby since November 2025, the organisation disclosed that preparations are also underway to initiate sales of processed gas to export-driven NLNG on an interruptible offtake basis.

In its latest monthly report, NNPC said all the required equipment, materials and personnel have been mobilised to the site for the OB3 River Niger crossing.

The organisation said the geotechnical data acquisition was completed and early construction works were ongoing in preparation for the commencement of drilling. The project has, however, failed several completion and commissioning targets.

Following the completion of the 11km Indorama gas export pipeline and receipt of regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), ANOH Gas Processing Company (AGPC) commenced gas supply to Indorama on Friday, 16th January 2026, under a firm and interruptible offtake Gas Sales Agreements (GSAs).

Since the first gas, wet gas production has stabilised, delivering 40-52 MMscfd of processed gas directly from the ANOH gas plant to the Indorama Petrochemical Plant. Condensate production has reached 2.0-2.5 kboepd and is expected to increase as the plant ramps up to its design capacity.
Preparations are also underway to initiate sales of processed gas to NLNG on an interruptible offtake basis, supporting further scale-up towards the plant’s full design capacity of 300 MMscfd.

Meanwhile, construction of the OB3 pipeline export route by Nigerian Gas Infrastructure Company (NGIC), originally designated as the primary channel for ANOH gas supply to the domestic market, has resumed, with a revised completion date to be communicated in due course.

The ANOH gas plant was developed by AGPC, a joint venture between Seplat Energy and NGIC. The integrated plant consists of two 150 MMscfd gas processing units, Liquefied Petroleum Gas (LPG) recovery units, condensate stabilisation units, a 16MW power plant, and other supporting facilities, designed to operate with zero routine flares.

According to the company, across the unitised field of OML 53 and OML 21, the ANOH gas plant unlocks an estimated 4.6 Tcf of condensate-rich gas resources. Seplat’s working interest 2P reserves in the unitised field, as booked at year-end 2024, stood at 0.8 Tcf. The company will derive value from two income streams: wet gas sales from OML 53 to the ANOH gas plant, and dividends from its 50 per cent equity ownership in AGPC.

Seplat stressed that LPG produced at ANOH, combined with output at Sapele and the Bonny River Terminal (BRT), will position Seplat as a leading supplier of clean cooking fuel to the domestic market. The ANOH gas plant will also process flared gas from the Ohaji field, enabling Seplat to achieve its onshore End of Routine Flaring programme, a key commercial and sustainability initiative.

The project has been delivered safely, with no recordable Lost Time Incident (LTI) across 17.5 million man-hours, underscoring the company’s commitment to safe and secure operations.

Chief Executive Officer of Seplat Energy, Roger Brown, said ANOH is the first of the seven critical gas development projects identified by the Federal Government of Nigeria to commence operations, noting that it is an important strategic project for Seplat, their partner NGIC, and Nigeria as a whole.

Brown added that it has taken a significant amount of commitment and hard work to complete the project in a part of the onshore Niger Delta with limited gas pipeline infrastructure, and they are extremely proud of this achievement.

“This is our third major gas processing facility onshore and increases our Joint Venture gross gas processing capacity onshore to over 850 MMscfd.

ANOH will provide material income streams for Seplat, reduce our carbon intensity and contribute significantly to the 2030 production target of 200 kboepd, set at our recent CMD. It will also increase energy access for Nigerians in terms of both power and clean cooking fuel for the local communities, while advancing delivery of our mission to support economic prosperity in Nigeria,” he said.

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