NNPC signs agreement for 7 critical gas projects to address shortfall in gas supply

NNPC Oil and Gas export earnings rise to $416m in one month
By Editor

The Nigerian National Petroleum Corporation (NNPC) on Monday signed seven Critical Gas Development Projects (7CGDP) to deliver about 3.4 billion standard cubic feet of gas per day (bscfd) to bridge the foreseen medium term supply gap by 2020 on an accelerated basis.

In a statement released on Monday by the corporation’s spokesman, Ndu Ughamadu, the Group Managing Director of NNPC, Maikanti Baru, enthused that the projects would not only bridge the projected shortfall in supply upon completion, but would also signal the beginning of the process of closing demand-supply gap in the domestic gas market.

According to the statement, the 7CGDP is an integral leg of the gas development strategy designed by NNPC to leverage the full potential of gas to meet the target of generating at least 15 gigawatts (GW) of electricity by 2020.

The 7CGDP include: development of the 4.3 trillion cubic feet (TCF) Assa North/Ohaji South field; development of the 6.4 TCF Unitized Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri); and the development of 7 TCF NPDC’s OML 26, 30 & 42.

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Others include: development of 2.2 TCF Shell Petroleum Development Company (SPDC) JV Gas Supply to Brass Fertilizer Company; cluster development of 5 TCF OML 13 to support the expansion of Seven Energy Uquo Gas Plant; and the cluster development of 10 TCF Okpokunou/Tuomo West (OML 35 & 62).

The NNPC helmsman said the corporation had engaged two World Class Project Management Consultants namely DeltaAfrik/Worley Parson & Crestech/Penspen who will work with NPDC and NNPC JV Partners and other stakeholders to achieve set project deliverables.

He further explained that the NNPC Project Management groups would strengthen oversight function on the seven critical gas development projects by ensuring prompt decision making and timely approvals in line with international best practices

The Managing Director of SPDC, which is handling three out of the seven projects, Osagie Okunbor, pledged the commitment of the company to the successful execution of the 7CGDP, noting that Shell was fully aligned with Nigeria’s gas strategy and aspirations.


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