‘Gas-fired power generation most economically viable for Nigeria’

Considering the amount of stranded gas that can be utilised for domestic consumption and the nation’s energy challenges, stakeholders in the gas sector have said gas-fired power generation represents the most economically viable and immediate means to fuel Nigeria’s energy needs.   

According to them, most of the gas produced is not channelled for local production due to the pricing regime.
   
Speaking at a technical symposium on gas utilisation, the Special Adviser to the Minister of State for Petroleum Resources, Dr. Timothy Okon, explained that efforts were being made to address the challenges limiting the utilisation of gas for domestic purposes.

President of the National Gas Association (NGA), Mrs Audrey Joe Ezigbo, argued that the gas sector can aid Nigeria’s diversification agenda if government is deliberate about the gas-to-power initiative, especially for industries.   
   
Noting that the 2008 regulations already defined the commercial regulations for the gas sector, Okon added that fiscal abuses bordering on producer cartels and economic hold up as well as regulatory illiteracy should be addressed.

The General Manager, Gas, Seplat Petroleum Development Company Plc, Okechukwu Mba, who represented Austin Avuru, the Chief executive Officer, said SEPLAT contributes about 30 per cent of domestic gas supply in Nigeria.
  
According to him, in the quest to supply gas to the Nigerian market, the Phase I expansion of 150MMscfd of Oben Gas Plant was completed in 2015, while the Phase II expansion adding 225MMscfd processing capacity was completed in 2016.
  
He added: “Our current well stock is capable of delivering around 400 MMscfd (gross). We have additional processing capacity available for 3rd party volumes (future tariffing revenue)
 
“Over $300million has already been invested in Oben Gas Plant Expansion Project. Our Sapele Gas Plant Upgrade and ANOH Project are to add 315MMscfd Capacity by 2020.”