The Nigerian Petroleum Development Company Limited has started the delivery of 65 million standard cubic feet per day of gas into the domestic market, in a bid to boost power generation and meet the high demand for natural gas in the country.
The NPDC is the exploration and production subsidiary company of the Nigerian National Petroleum Corporation. The company currently produces about 130,000 barrels of oil per day and 400mmscf/d of gas from its various operated assets.
The 65mmscf/d supply is capable of generating about 260 megawatts of electricity, and is sourced from Oredo field in OML 111, the firm said in a statement on Friday.
The Oredo Integrated Gas Handling Facility project is currently being executed by an indigenous contractor, Network Oil & Gas Company Limited.
The overall project completion is about 65 per cent and is expected to be ready for commissioning in 2013, according to NPDC.
The GHF is located in Oredo Field (OML 111) approximately 35 kilometers south of Benin City in Edo State.
The Oredo gas project is a 100mmscf/d capacity gas plant with fractionation and LPG dispensing units.
When the plant is completed by the third quarter of 2013, it will produce 100mmscg/d Lean gas (West African Gas Pipeline specification) and 330 tonnes per day of LPG, according to the statement.
This is expected to increase power generation and LPG utilisation in the country, which will reduce firewood and kerosene consumption, thereby contributing to a cleaner environment.
In addition to the existing Gas Handling Facility, NPDC said it had commenced another project, which would deliver 100mmscf/d of raw gas to PanOcean Oil Corporation to utilise its spare capacity available in the Ovade Ogharefe gas plant.
With these projects, gas flaring at NPDC Oredo fields will be eliminated in line with the flare out directives of the Federal Government, it noted.