Delay in Seplat’s ANOH Gas Processing Plant Completion Poses Challenge to Nigeria’s Gas Development Plans

The completion date for Seplat’s ANOH Gas Processing Plant, a critical component of Nigeria’s gas development plans, has been pushed from the end of this year to the third quarter of 2024. This delay is attributed to various factors including pipeline construction delays, adverse weather conditions, and security concerns. The setback could impact Nigeria’s ambitious goal of boosting local gas production and transitioning from an oil-dependent economy to one driven by gas.

Key Points:

1. Reasons for Delay:
   • Pipeline Construction Challenges: Delays in pipeline construction have been a significant factor in the slowed progress of the ANOH Gas Processing Plant project.
   • Weather and Security Concerns: Poor weather conditions and security issues have further contributed to the project’s slower-than-anticipated advancement.
2. Government Partner’s Involvement:
   • The Nigerian Gas Infrastructure Company (NGIC), a subsidiary of NNPC Ltd, is the government partner responsible for providing the necessary pipelines to transport gas from ANOH to demand centers. They have adjusted their expected completion time for pipe installation to the end of 2023.
3. Revised Completion Timeline:
   • Seplat Energy believes that a more realistic revised completion date is the first quarter of 2024. Additionally, a six-month margin of error is factored into their planning assumptions, leading to a revised target of the third quarter of 2024 for first gas production.
4. Impact on Nigeria’s Gas Production Goals:
   • The delay in the ANOH project complicates Nigeria’s projection to increase natural gas production significantly. This affects the country’s target of shifting its economic focus from oil to gas.
5. Challenges Faced by Seplat:
   • Seplat’s Eastern assets have experienced higher deferments due to the unavailability of the Trans-Niger Pipeline (TNP), a critical infrastructure that has been targeted by attacks and illegal connections.
6. Decade of Gas Plan:
   • Nigeria’s $20 billion ‘Decade of Gas’ plan envisions substantial growth in gas demand driven by major projects. These initiatives were expected to catalyze the development of critical gas infrastructure.
7. Ongoing and Future Projects:
   • Various projects, including the Assa North-Ohaji South Gas Development Project and Central Processing Facilities, are slated for development to enhance gas production and processing capabilities.

Conclusion: The delay in Seplat’s ANOH Gas Processing Plant completion underscores the challenges faced in Nigeria’s endeavor to bolster local gas production and reshape its economic reliance on oil. Addressing the issues contributing to the delay will be crucial in realizing the country’s ambitious gas development plans and achieving a successful transition to a gas-driven economy.

BD