Politics

Tinubu commissions ANOH gas processing plant to boost Nigeria’s energy

The President, Bola Ahmed Tinubu, has commissioned the Seplat Energy ANOH Gas Processing Plant, marking a significant milestone in Nigeria’s energy landscape at Assa Community in Ohaji/Egbema Council Area of Imo State.

Built by the ANOH Gas Processing Plant Company (AGPC), the ANOH plant is a joint venture owned equally by Seplat Energy and the Nigerian Gas Infrastructure Company (NGIC), a wholly owned subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The plant achieved mechanical completion in December 2023 without a single recordable Lost Time Incident (LTI) across 12 million man-hours. With a Phase One processing capacity of 300 million standard cubic feet per day, the ANOH Gas Processing Plant is expected to deliver dry gas, condensate, and LPG to domestic and international markets.

During the plant’s commissioning on Wednesday in Imo State, President Tinubu commended Seplat Energy and its partners for their dedication to advancing Nigeria’s energy agenda.

He said, “Today is a great day of achievement demonstrating teamwork, commitment, and dedication to duty. I congratulate you for all you have done for the country and for fulfilling this in only 11 months.”

He described the event as highly significant, demonstrating the administration’s determination to accelerate the development of critical gas infrastructure aimed at enhancing energy supply to boost industrial growth, create employment opportunities, and further prosperity for the nation.

He added, “The project also fully aligns with the Decade of Gas initiative and our quest to create value from the nation’s abundant gas asset while eliminating gas flaring and promoting industrialization.”

President Tinubu assured the Nigerian people that this project represents only the beginning, adding that the Federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest possible realization of abundant gas fuel for prosperity.

In his remarks, Mr. Udoma Udo Udoma, Board Chairman of Seplat Energy, emphasized the strategic importance of the ANOH project, stating that “The ANOH gas project strongly aligns with Seplat Energy’s mission of leading Nigeria’s energy transition with accessible, affordable, and reliable energy that drives social and economic prosperity.”

He highlighted that as a testament to their pledge to Nigeria, in partnership with NNPC Ltd, they have delivered the project that will support the current administration’s drive for industrialization and economic growth through low-cost reliable power.

He added, “To put this into context, if all of the gas from this plant went into the power sector, it would produce enough electricity to transform the lives of over 5 million people.”

Given that Nigeria’s population is growing at a rate of over 5 million per annum, he emphasized the need for one of these plants a year every year just to meet the demand of new arrivals.

He concluded by appreciating the unwavering support of their partner NNPCL, the cordial relationship with their host communities, the Imo state government, and the support of all stakeholders.

The CEO of Seplat Energy, Mr. Roger Brown, while commenting on the commissioning of the ANOH project, stated that “Seplat Energy is pleased with the progressive reforms by His Excellency President Bola Ahmed Tinubu and his administration.”

He noted that in March 2024, the President signed executive orders to enhance investments in greenfield gas development and midstream capital projects. He added that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently improved gas prices under the DSO, to trigger further investments in the domestic gas sector – our ANOH gas plant will benefit from these reforms and incentives. “No doubt, the ANOH’s gas will further reduce Nigeria’s carbon intensity and increase energy supplied to the Nigerian domestic market.”

Speaking on the collaborative efforts between Seplat Energy and the Nigerian Gas Infrastructure Company (NGIC) in bringing the ANOH Plant to fruition, Mr. Mele Kyari, the Group CEO of NNPC Ltd, stated that the ANOH Gas Processing Plant being commissioned by NNPCL and their partner is in line with Nigeria’s decade of gas agenda and particularly consistent with the administration’s efforts to boost gas supply in the domestic market.

Governor Hope Uzodimma of Imo State congratulated Seplat Energy on the record time completion of the project and expressed his delight at the opportunities that lie ahead for the State on account of the successful completion of the ANOH plant.

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Uzodimma, represented by the Deputy Governor Dr. Chinyere Ekomaru, also commended President Tinubu for considering Imo State as one of the best places to locate the gas plant project.

The Minister of State for Petroleum Resources, Rt. Hon. Ekperikpe Ekpo, remarked that, “With a capacity of 600 million standard cubic feet per day, the ANOH Gas Processing Plant is a shining example of advancement.”

He noted that the plant will greatly advance the availability of domestic gas, which will boost power generation and hasten industrialization.

Recalling that the ANOH Gas Processing Plant, located at Ohaji in Imo State, is set to become one of Nigeria’s most strategic gas projects. It is poised to pave the way for increased gas production in Nigeria, accelerating the nation’s transition from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.

In February 2021, AGPC successfully raised $260 million in debt to fund completion of the ANOH project. The project is now fully funded following the completion of equity investments of $210 million by each partner ($420 million combined).