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By Emmanuel Addeh
The federal government said yesterday that the Integrated Gas Handling Facility (IGHF) and Liquefied Petroleum Gas (LPG) processing and dispensing plants in Ologbo, Edo State, would generate $200 million in annual revenue into the country’s coffers.
“The lean gas can generate at least 267 megawatts of power per day and also ensure feedstock to gas-based industries. In total , the NPDC stands to generate revenue in excess of $200m per annum from the IGHF plant,” a documentary put together by the NPDC during the event showed.
Speaking during a partially virtual and physical ceremony to officially declare the over 200 million standard cubit feet per day project open, President Muhammadu Buhari said Nigeria has moved a step closer to the nation’s dream of full utilisation of its abundant gas potential.
TODAY
December 23, 2020
President Muhammadu Buhari yesterday pledged to deepen gas production and utilization in Nigeria to enhance economy growth of the nation
Speaking at the commissioning of the Integrated Gas Handling Facility, IGHF, and LPG storage and dispensing plants at Ologbo, in Oredo in Edo State, the President stated that his administration would not relent in its drive to use gas as a catalyst for sustainable economic development of Nigeria.
According to him: “At the beginning of 2020 we made a solemn declaration of scaling up gas utilization to develop the transport system, create jobs and other economic activities.”
He explained that in the course of the year, substantial development has taken place in the gas sector, as can be seen in the expansion of Escravos-Lagos gas pipeline, the OB3 gas pipeline and the Ajaokuta Kaduna–Kano gas pipeline, signing of final direct investment (FDI) and the Oredo Integrated Gas Handling facility.
Facility to provide 3.5m megawatts electricity in 25yrs
About N2.8 trillion-revenue is expected from a new 200 million cubic feet gas project being promoted by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
This revenue is expected to be made in about 25 years as the Integrated Gas Handling Facility (IGHF) and LPG Units project would contribute at least $300 million yearly, bringing revenue to about $7.5 billion (N2.8 trillion) at full output.
The project, which could be commissioned later this week, is coming shortly after a new pipeline project, the Ajaokuta-Kaduna-Kano pipeline, kicked off.
The NPDC IGHF according to the NNPC would yield 82mmscfd of lean gas or methane, which is equivalent to 366.5MW of electricity per day.
Speaking to journalists after the pre-commissioning tour of the facilities at Ologbo yesterday, the Managing Director of Nigerian Petroleum Development Company Ltd (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC) Mr Mansur Sambo, said the IGHF has the capacity to produce 30 metric tonnes of gas per day and the storage tanks can store up to 42,000 metric tonnes of gas.
Sambo said the NPDC would use the Ologbo-based IGHF to accomplish its domestic gas supply obligation to the country and getting more value from gas molecules that could have been flared.
“The IGHF will help NPDC meet its domestic supply obligation (DSO) from the Oredo field and in the process, ensure complete gas flare-out from there’’, he said.