A joint venture partnership between two indigenous oil and gas companies — Frontier Oil Limited and Seven Energy International Limited — has brought on-stream a new gas facility in Nigeria, which is capable of generating 1,000MW of electricity
The US$555.7mn Uquo gas processing facility, which was commissioned by President Goodluck Jonathan in Esit Ekit, Akwa Ibom State, is one of the biggest projects of its nature undertaken by independent indigenous partners in sub-Saharan Africa, Business Daily reported.
First commercial gas deliveries from the facility commenced in early 2014 to the 190MW Ibom power station.
The facility is expected to start supplying 3.7mn standard cu/m per day of gas to the 560MW Calabar National Integrated Power Project (NIPP) power station in Q4 2014.
President Jonathan said, “Seven Energy and Frontier Oil deserve commendation for combining their individual capacities to deliver this project which will have multiplier effect on the economy such as increasing national power output, employment opportunities for the host communities and Nigerians and additional revenue for both the federal government and Akwa Ibom State.”
Philip Ihenacho, CEO of Seven Energy, added that the Uquo gas project is a reflection of the company’s unique focus on the emerging Nigerian domestic gas market, adding that Nigeria has immense gas potential which remains untapped both for power generation and industrial use.
“This plant with just two trains can do over 5.66mn standard cu/m per day that can power almost 1,000MW of power. So as well as Ibom power, we are building a pipeline which is almost completed now to Calabar NIPP. So with these two trains, we will be able to power both Ibom Power as well as all of the gas need for Calabar NIPP for the next 20 years,” Ihenacho said.
