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Hope Rises for Improved Power as NPDC Delivers Additional 100m Standard Cubic Feet of Gas Daily

Efforts by the Federal Government of Nigeria to achieve uninterrupted power supply in the country may in the next few weeks get the much needed fillip when the 100 million standard cubic feet of gas capacity Oredo Integrated Gas Handling Facility (IGHF) project in Ologbo, Ikpoba-Okha local government area of Edo State comes on stream. By the October 31, 2020 date when the project would be delivered, Nigeria might be achieving self-sufficiency in domestic gas consumption thereby curbing importation of gas, according to the Nigerian National Petroleum Corporation (NNPC).

The Group Managing Director (GMD) of the Corporation, Mallam Mele Kyari who made this known Wednesday during his inspection visit to the Oredo Integrated Gas Handling Facility (IGHF) project, stated excitedly that “Completing this project is a monumental feat for this country and ultimately what is important is that this country will be sufficient in LPG within a short period of time”. He revealed that the Nigerian Petroleum Development Company (NPDC) is the largest producer of gas, contributing one billion standard cubic feet of gas per day (1bscfg/d) to the domestic market for power generation.

According to Kyari, the IGHF plant is estimated to produce a 100 million standard cubic feet of gas per day, 330 metric tonnes of Liquefied Petroleum Gas (LPG) per day, 300 metric tonnes of Propane, and 2,600 barrels of condensate, stressing that “this is very monumental compared to the current levels where all the supply, except those coming from the NLNG, are coming from imports. And we are trying to contain importation of gas because Nigeria is blessed with gas resources and we cannot be importing LPG from anybody”.

The GMD said “With the support from President Muhammadu Buhari, we will now be delivering gas without interruption into the domestic market, supply of crude oil to the international market by our own company. Today, we are making about five billion standard cubic feet of gas into the entire domestic market which includes the NLNG supply of about 3.5 billion; the balance of 1.5 billion or a little more than that comes into the domestic market. That is shared between power and industries”. He said the project which was awarded in 2015, would be commissioned in October, 2020.

Kyari also stated that NPDC was targeting the production of 500,000 barrels of oil per day (bopd) within the next two years, adding that the company had programmed key drilling and invention projects and activities to ensure that the set target was achieved.

“A little around one year ago, NPDC was producing about 136,000 bpd; today, we are producing 260,000 barrels of oil per day. This is a very magnificent level of growth in any upstream company and our target is to take this company towards production level of 500,000 barrels of crude per day.
This is possible within two years. We have lined up a number of projects and activities and today, we have the highest number of rig running in this country.

“We have five rigs running at the same time adding incremental value and delivering major projects which will ultimately contribute towards the production of 500, 000 barrels of oil per day,” he said.

Also speaking, the Managing Director of NPDC, Mansur Sambo said by the completion of the plant, NPDC would have achieved flare out in OML 111 and other neighbouring fields in compliance with the federal government directives. Sambo explained that the Oredo IGHF plant would boost power generation in Nigeria adding that there would be more gas deliveries to the power sector.

Oredo Integrated Gas Handling Facility (IGHF) project in Ologbo, Ikpoba-Okha local government area of Edo State
Oredo Integrated Gas Handling Facility (IGHF) project in Ologbo, Ikpoba-Okha local government area of Edo State
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