NNPC, Seplat Plan To Raise $700 Mln To Fund New Gas Plants

The Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Development Co plan to raise $700 million to fund a joint gas project in a bid by the West African country to wean itself from oil dependence.

The Gas project, which is part of moves by the government to end gas flaring in the country is expected to start production in the fourth quarter of 2020.
The project, known as Assa North-Ohaji South, is one of seven to boost gas production and infrastructure development in the country.
ANOH Gas Processing Co., owned by Seplat and the Nigerian Gas Company, a unit of NNPC, will develop, build and operate the plant in Imo State.
Seplat and Nigerian Gas are expected to contribute 60 percent of the funds as equity of the new venture, while ANOH will source the balance as debt, Seplat Chief Executive Officer Austin Avuru said.
“Both parties already have each contributed $100 million in equity,” Avuru said. “There will be another equity injection and at the back end of it will be debt.’’
The plant, which will process wet gas from the unitized upstream fields at OML 53 and OML 21, has an initial capacity of 300 million standard cubic feet per day.
It’s scheduled to begin production by the last quarter of 2020 and the first supply is targeted in 2021, Avuru said.
Nigeria’s government is encouraging investments in gas infrastructure to improve supplies to power companies and diversify the economy away from oil, which currently accounts for the bulk of revenue.
ANOH will target local customers and has the capacity to double production “depending on domestic demand and the availability of feeds including third-party gas,” Avuru said.