In what is a significant boost to Nigeria’s gas-to-power aspirations, a joint venture partnership between two indigenous Nigerian independent oil and gas companies, Frontier Oil Limited and Seven Energy International Limited, has brought on stream a new gas facility capable of generating 1,000 megawatts (MW) of electricity.
The N90 billion Uquo gas processing facility, which was commissioned by President Goodluck Jonathan on Thursday in Esit Ekit, Akwa Ibom State, is one of the biggest projects of its nature undertaken by independent indigenous partners in sub-Saharan Africa.
First commercial gas deliveries from the facility commenced in early 2014 to the 190MW Ibom power station.
The facility is expected to start supplying 131 million standard cubic feet per day (mmscfd) of gas to the 560MW Calabar NIPP power station in the fourth quarter of the year.
Speaking at the commissioning, President Jonathan commended Seven Energy and Frontier Oil Limited for the project and the impact it will have on Nigeria’s aspiration for sustainable power supply.
“We are happy with what we have seen today. Seven Energy and Frontier Oil deserve commendation for combining their individual capacities to deliver this project which will have multiplier effect on the economy such as increasing national power output, employment opportunities for the host communities and Nigerians and additional revenue for both the Federal Government and Akwa Ibom State,” Jonathan said.
Philip Ihenacho, chief executive officer of Seven Energy, the JV partner that provided the technical services and 100 percent of the funding for the gas facility, said the Uquo gas project is a reflection of the company’s unique focus on the emerging Nigerian domestic gas market, adding that Nigeria has immense gas potential which remains untapped both for power generation and industrial use.
“This plant today just with the two trains that have been installed here can do over 200 million standard cubic feet of per day (mmscfd). 200mmscfd can power almost 1,000MW of power. So as well as Ibom power, we are building a pipeline which is almost completed now to Calabar NIPP. So with these two trains, we will be able to power both Ibom Power as well as all of the gas need for Calabar NIPP for the next 20 years,” he said.
According to Ihenacho, the facility would be expanded as they get more customers and are able to access more gas in the area. “The investment we have made as Seven Energy to date has been approximately N90 billion (over $600 million),” he said.
“It is one of the best gas plants in Nigeria. This is the biggest of such a project in sub-Saharan Africa and we are very proud of it,” said Dada Thomas, managing director of the operators of the project, Frontier Oil.
Noting that Akwa Ibom State is enjoying steady electricity supply in Nigeria as gas is being supplied to Ibom Power plant and generating about 100MW, he said: “What is the impact of that? It means that the hairdresser can do her hairdressing. It means that the welder can do his welding. It means that the factory can carry on production.”
