NPDC to boost domestic gas market with 600mmscf/d supply

The Nigerian Petroleum Development Company (NPDC) says it plans to boost gas supply to the domestic market by 600million standard cubic feet per day (mmscf/d) in the next three to five years.

The Managing Director of NPDC, qn exploration and production subsidiary of the Nigerian National Petroleum Corporation (NNPC), Engr. Mansur Sambo, disclosed this during a facility tour of the company’s Oredo Gas Handling plant by the Group Managing Director of NNPC, Mallam Mele Kyari, in Benin City, Edo State.

A statement by the Corporation on Friday said Sambo who spoke on the medium term projection of the company explained that besides the one billion standard cubic feet per day (bscf/d) it currently produces, the company would add another 600mmscf to its production portfolio in the next three to five years.

NPDC is currently the highest supplier of natural gas to the domestic market.

Sambo said the company’s OML 34 was expected to deliver 360mmscf/d, while OMLs 42 and 111 would deliver 120mmscf/d apiece.

He stated that NPDC has revved up production in OML 111 by 2,100 barrels per day (bpd) of crude oil and 27mmscfd of gas, thereby increasing cumulative production from the acreage to 10,699bpd.

He also revealed the successful drilling of Well 16 in OML 111, noting that the well was essentially for gas with associated crude oil.

He added that the plan was for the Gas Plant to be fed from the well.

On the Gas Handling Facility, the NPDC boss disclosed that the Liquefied Petroleum Gas (LPG) unit would be ready for commissioning in October, 2020.

On his part, Mallam Kyari described the development as a significant step towards growing the nation’s crude oil reserves and increasing production, stressing that more of such was needed to meet the target of 3million barrels per day production and sustain the nation’s economic growth.

“This gas facility in particular will deliver at least 240 metric tons of LPG to domestic market within a year and that is a very significant fraction of current level of supply into the market. It will ease the spending on foreign exchange by the country.

“This is monumental and underscores government efforts of making sure that this is the year of gas. The gas is the cheapest and easiest way of getting development in this country,” he stated.

He congratulated the management and staff of NPDC for fast-tracking the completion of its Liquefied Petroleum Gas (LPG) Gas Plant, reiterating that gas development was key to the nation’s quest for industrialization.