NPDC aims increased gas supply to domestic market

The Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), is planning to boost gas supply to the domestic market by 600million standard cubic feet per day (mmscf/d).

The Managing Director of NPDC, Engr. Mansur Sambo, disclosed this during a facility tour of the company’s Oredo Gas Handling plant by the Group Managing Director of the NNPC, Mallam Mele Kyari, in Benin City, Edo State.

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Speaking on the medium-term projection of the company which is currently the highest supplier of natural gas to the domestic market, he said besides the one billion standard cubic feet per day it currently produces, the company would add another 600mmscf to its production portfolio in the next three to five years.

Giving a breakdown of the projection, 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 2,100barrels per day (bpd) of crude oil and 27mmscfd of gas, thereby increasing cumulative production from the acreage to 10,699bpd.

Sambo, who also announced the successful drilling of Well 16 in OML 111, said the well was essentially for gas with associated crude oil, adding that the plan was for the Gas Plant to be fed from the well.

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

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 three million barrels per day production and sustaining the nation’s economic growth.

“This gas facility in particular will deliver at least 240 metric tons of LPG to the domestic market within a year and that is a very significant fraction of the current level of supply into the market. It will ease the spending on foreign exchange by the country. This is monumental and underscores government’s efforts in making sure that this is the year of gas. Gas is the cheapest and easiest way of getting development in this country,” he said.