Jonathan inaugurates N90bn Uquo gas processing facility

Seven Energy’s N90 billion Uquo gas processing facility in Esit Ekit, Akwa Ibom State, was inaugurated on Thursday by President Goodluck Jonathan.

The facility is owned by Accugas Ltd, a subsidiary of Nigerian oil and gas company, Seven Energy International Ltd.

The facility is seen as a major boost to Nigeria’s quest for a stable power supply.

At the inauguration, Jonathan commended Seven Energy and its JV partner, Frontier Oil Limited, saying: “We are happy with what we have seen today. 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.”

Dada Thomas, the chief executive officer of Frontier Oil Limited, the operators of the Uquo Joint Venture described the commissioning as the beginning of a gas value chain that would affect the lives of Nigerians and boost the nation’s economy.

“With an added 1,000 megawatts of electricity to our national grid, our production capabilities are bound to expand, increasing the size and breath of our economy,” Thomas said.

“This means that the hairdresser can do her hairdressing, the welder can do his welding, and the factory can carry on production. It means that the people in the office can function because their computers will have power and all those things have an impact on the ability of each individual to produce optimally.

He said the plant is poised to offer efficient service delivery and unmatched quality gas supply which will, in turn, translate into  efficient  power generation by the power plants using the gas from this facility.

Mr. Philip Ihenacho, the CEO of Seven Energy,  described the project as a reflection of the company’s “unique focus” on the emerging Nigerian domestic gas market, saying the country has “immense gas potential” both for power generation and industrial use.

“We are happy to see our investment culminate in the commissioning of this facility which will support government’s effort to improve power supply, create job opportunities for Nigerians and impact other sectors of the economy,” he said, adding that the first commercial gas deliveries commenced in early 2014 to the 190mw Ibom power station.

“With the addition of deliveries to the 560mw Calabar NIPP power station, we will be supplying gas to more than 10% of Nigeria’s power generation capacity.  In total, we have 1.3 trillion cubic feet of long-term gas sales agreements.

“With these two trains, we will be able to power both the Ibom Power Plant as well as all of the gas needed for the Calabar NIPP for the next 20 years. We intend to expand as we get more customers and are able to access more gas in this area.”

Ihenacho revealed that the gas facility is one of the biggest projects of its nature undertaken by an independent company in Sub-Saharan Africa.

“Seven Energy provided the technical services and 100% funding for the gas facility and transportation infrastructure, at a cost of some N90 billion which attests to the growing capacity of indigenous operators in Nigeria in line with the federal government’s policy of increasing indigenous participation in the sector,” he said, thanking the federal government and Akwa Ibom state government for their support in ensuring commencement of production.

The Uquo Field was one of the 24 marginal fields awarded to indigenous companies by the Department of Petroleum Resources (DPR) in 2003 as part of federal government’s Marginal Field Programme, aimed at increasing reserves, production, employment, local content and indigenous participation in the upstream oil and gas business.

The commissioning ceremony was attended by minister of petroleum resources Diezani Alison-Madueke, minister of power Chinedu Nebo and the executive secretary Nigerian Content Development and Monitoring Board (NCDMB), Mr. Ernest Nwapa.