Domestic gas consumption gets a boost as NPDC completes gas plant

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The Nigerian National Petroleum Corporation (NNPC) on Wednesday said it would reduce importation of Liquefied Petroleum Gas (LPG) into the country when the 100 million standard cubic feet of gas capacity facility at Oredo flow station in Benin City, Edo State, is commissioned.

President Muhammadu Buhari, according to Mele Kyari, group Managing Director of the NNPC, will commission the Oredo Integrated Gas Handling Facility (IGHF) project built by the Nigerian Petroleum Development Company (NPDC) on October 31, 2020.

While inspecting the facility, Kyari said the plant has an estimated product streams of 330 tons of liquefied petroleum gas, 345 tons of industrial-grade propane, and 2,600 barrels daily of condensate.

When completed, it will deliver 260,000 metric tons of LPG representing 40 percent of domestic requirement significantly cutting the product import.

“Completing this project is a monumental feat for this country and we know that there are other efforts that are going on and we are supporting all of them. But ultimately what is important is that this country will be sufficient in LPG within a short period of time.

According to Kyari, about 5billion standard cubic feet of gas is being delivered into the domestic market.

“The contribution of that gas from NPDC is One billion standard cubic feet of gas. So NPDC is a critical stakeholder in the supply of gas into the domestic market”, he said.

The NNPC boss, who commended the management of the NPDC for the speedy completion of the project, however, added that NPDC targets production of 500,000 barrels of petroleum products per day.

He explained that NPDC at the moment produces 260, 000 barrels per day as against 136,000 barrels in 2019.

“This is possible within two years, we have lined up of projects and activities. Today we have the highest number of rings running in this country. Five rigs running at the same time adding incremental value, delivering major projects, which will ultimately take to producing that 500,000 barrels per day target.

“NPDC is a company 100 percent owned by Nigeria and we are delivering it to be the number one upstream company in this country.”

“With the support and alignment of all the stakeholders particularly the support we are getting from our president Muhammadu Buhari for us to deliver this company as the number one upstream company, we are going to ensure that gas will now be delivered without interruption into the domestic market, supply of crude oil to the international market by our own company by our own control will be justified.

“Today, the largest contributor gas to the domestic market is NPDC to the power sector. This is a National responsibility and a commercial venture with a national outlook”, he added.

Earlier in his address, the managing director of NPDC, Mansur Sambo, said the company is the current largest contributor of gas to the domestic market and power sector in the country.

Mansur said the contract for the construction of the Integrated Gas Handling Facility (IGHF) awarded in 2015 was however started in 2017 due to budgetary constraints.

He, however, described the company as a national responsibility and a commercial venture with a national outlook.

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