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2 minutes read

Nigeria Initiates Three Key New Gas Projects

The Nigerian government, under the leadership of President Bola Tinubu, has initiated three significant gas projects aimed at enhancing the nation’s energy infrastructure.

These initiatives encompass the expansion of the AHL Gas Processing Plant, the development of the ANOH Gas Processing Plant, and the construction of the 23.3-km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline, with all these facilities located in the southeastern region of Nigeria. The inauguration of these projects was conducted with President Tinubu presiding over the ceremony via a virtual link from Abuja.

The expansion of the AHL Gas Plant represents a cooperative effort involving the Nigerian National Petroleum Company Limited (NNPCL), Sterling Oil Exploration and Energy Production Company Limited, and Seplat Energy Plc. The ANOH Gas Processing Plant, on the other hand, is a comprehensive facility designed for the processing of non-associated gas and has a processing capacity of 300 million standard cubic feet (MMscf) per day.

President Tinubu remarked on the potential of these projects to significantly increase the supply of gas for the nation’s power sector, gas-based industries, and other vital economic sectors. He also noted their alignment with the government’s Decade of Gas Initiative, which is focused on maximizing Nigeria’s extensive gas reserves, minimizing gas flaring, and fostering industrial development.

It is projected that these projects will contribute approximately 500 MMscf of gas daily to the domestic market, equating to a 25% enhancement in the gas supply. This increment is expected to support various industries including electricity generation and gas-reliant manufacturing sectors, contributing to industrial expansion and job creation.

NNPCL’s Group Chief Executive Officer, Mele Kyari, highlighted the transformative impact of this gas revolution on the domestic market, emphasizing its role in power generation, the industrial sector, and in chemical production. Kyari pointed out the potential for job creation, increased tax revenue, and other benefits commonly associated with gas-producing countries.

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