NPDC gives life to NNPC domestic gas pledge; to raise supply by 600mmscf/d  

…To commission 240MT LPG plant

Just days after state-owned oil company, Nigerian National Petroleum Corporation (NNPC), made a commitment that it would work with stakeholders to boost gas delivery to the domestic market, its exploration and production subsidiary, Nigerian Petroleum Development Company (NPDC), has unfolded its strategic plan to raise its gas supply to the market by 600 million standard cubic feet per day (mmscf/d) in the next three to five years.

Mele Kyari, NNPC’s group managing director, conducting a facility tour of NPDC’s Oredo gas handling plant in Benin City, Edo State, was told by Mansur Sambo, the managing director of NPDC, that the company would add 600 mmscf/d to the one billion standard cubic feet per day (bscf/f) it currently produces, according to a statement issued by Kennie Obateru, group general manager, group public affairs division, and made available to Business A.M.

Sambo is quoted by Obateru as saying this was a medium-term projection for the company, which is currently the highest supplier of natural gas to the domestic market that is expected to be executed in the next three to five years.

According to Sambo, the projection will be achieved from production by OML 34, where 360mmscf/d is expected to be delivered and OMLs 42 and 111, which will each deliver 120mmscf/d.

Additionally, the NPDC chief revealed that the E&P company has revved up production in OML 111 by 2,100 barrels per day (BPD) of crude oil and 27mmscfd of gas, thereby increasing cumulative production from the acreage to 10,699bpd.

Besides, Sambo stated that NPDC has also successfully drilled Well 16 in OML

111, which was essentially for gas with associated crude oil, adding that the plan was for the gas plant to be fed from the well.

The projection of increased domestic gas supply by the NPDC comes ahead of the planned commissioning of the liquefied petroleum gas (LPG) unit of the Gas Handling Facility, which Sambo is also quoted as saying would be ready in October 2020.

The NNPC statement also quoted Kyari, the group managing director, as describing the development as a significant step towards growing the nation’s crude oil reserves and increasing production, and that he stressed that more of such was needed to meet the target of three million barrels per day production and sustain the nation’s economic growth.

“This gas facility, in particular, will deliver at least 240 metric tons of LPG to domestic market within a year and that is a very significant fraction of current level of supply into the market. It will ease the spending on foreign exchange by the country. This is monumental and underscores government efforts of making sure that this is the year of gas. The gas is the cheapest and easiest way of getting development in this country,” Kyari is directly quoted to had said.

Obateru said Kyari congratulated the management and staff of NPDC for fast-tracking the completion of the Liquefied Petroleum Gas (LPG) Gas Plant, reiterating that gas development was key to the nation’s quest for industrialisation.