The Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Development Company, have signed five agreements to expedite the development of a project aimed at delivering about 3.4 billion standard cubic feet of gas per day by 2020.
The MoUs signed include: the AGPC Shareholders Agreement between AGPC, NGPTC and Seplat; AGPC Share Subscription Agreement between AGPC, NGPTC and Seplat; Wet Gas Sales and Purchase Agreement between, NNPC, Seplat and AGPC; Gas Sale and Purchase Agreement between AGPC and Nigerian Gas Marketing Company (NGMC); and Gas Marketing Agreement between AGPC and NGMC.
The development, according to a statement by the NNPC on Monday, is part of efforts to bridge the projected medium-term gas supply gap expected by 2020.
The project, Assa North and Ohaji South (ANOH) gas development scheme, is one of the 7 Critical Gas Development Projects (7CGDP) which is aimed at boosting gas production and infrastructure development.
Group Managing Director of the NNPC, Dr. Maikanti Baru, who was represented by the Chief Operating Officer, Gas and Power, Engr. Saidu Mohammed, explained during the signing that a special purpose vehicle known as ANOH Gas Processing Company (AGPC) was being promoted by the Corporation and Seplat to develop, build, operate and maintain the ANOH Gas Processing Plant, with an initial capacity of 300 million standard cubic feet per day in Imo State, South East, Nigeria.
He said the project, designed as world-class gas processing plant, has capacity to deliver between 3billion and 3.4billion standard cubic feet of gas daily.
The execution of Heads of Terms (HoT) by the Nigerian Gas Processing and Transportation Company (NGPTC) on behalf of the NNPC, Seplat and AGPC was done in December, 2017. “The Steering Committee for the AGPC project has provided the leadership and broad guidance for the development and finalisation of the various commercial agreements required to underpin the project,” Dr. Baru said.
Chief Executive Officer of Seplat, Mr. Austin Avuru, said the ANOH Gas Processing Plant is a landmark project which captures the essence of the gas infrastructure development initiative of the Federal Government as encapsulated in the 7 Big Wins and 12 business focus areas programmes, adding that AGPC would deliver the project within the next 18 months.
The Nigerian Gas Processing and Transportation Company (NGPTC) and the Nigerian Gas Marketing Company (NGMC) are subsidiaries of the NNPC.