Seplat Petroleum Development Company Plc has identified the Assa North-Ohaji South (ANOH) gas processing project as very bankable and capable of boosting Nigeria’s domestic gas supply significantly.
A Seplat team led by the company’s chief executive officer, Mr. Austin Avuru, gave an in-depth presentation on the company’s gas business to investors, sector and financial analysts during its 2019 Capital Markets Day at the London Stock Exchange (LSE), recently.
During his introductory presentation, Avuru highlighted that the ANOH gas processing plant will be the first stand-alone midstream joint venture business between the Nigerian National petroleum Corporation (NNPC) and a company in the private sector.
According to him, with the ANOH project, Seplat aims to be the largest supplier of gas to the domestic market. “By the time we commission the ANOH project, we will be able to produce 850 Mscfd.
“Overall, the gas business was not attractive in 2010 and some years after. Seplat however took a conscious decision to invest in the gas business upon the price of gas inching up as ‘willing buyer willing seller’ commercial terms became possible,” he said.
He also explained that the company’s gas is for the domestic market, quipping that Nigeria has a notable population which is projected to continue to grow to 450 million people by 2050.
He noted that “Seplat has strategically positioned itself ahead of that opportunity and with projected demand for gas and improved fiscal regime, there is a compelling case for gas.
“Displacing diesel in Nigeria’s environment is a priority for the company. Currently, Seplat gas accounts for 30 to 35 per cent of power generated and the company is determined to continue the lead in this area.”
He added that “For Seplat, our gas business is a national project. As a result, facilitating gas to power and gas to industry have become critical for the company.”
On his part, operations director, Seplat, Mr. Effiong Okon, said the successful delivery of Oben midstream plant expansion will be replicated at ANOH, pointing that as demand for gas continues to outstrip available supply, Seplat will continue to be strategically positioned to capitalise on future expansion of the gas business.
The general manager, Seplat, Okey Mba, further highlighted the business case for the company’s gas business and demonstrated how the company would derive and deliver more benefits with its gas business. He maintained that the economics of switching from diesel to gas fired power generation are compelling.
The managing director of AGPC, Yetunde Taiwo and the project manager, Doug Kinloch, in separate interviews, provided comprehensive information on the ANOH project, highlighting project development overview, contracting and Local Content strategy, regulatory compliance, the commercial structure, community management and project execution schedule, amongst others.
Chief financial officer of Seplat, Roger Brown provided highlights on the funding structure showing that the company proactively is addressing debt investors and funding considerations upfront to ensure success of the project. He added that the company has received significant show of interest with major key stakeholders, both from international and local banks, amongst others.