By Toyin Akinosho, in Abuja
The Utorogu NAG 2 Plant, a 150MMscf/d capacity gas plant to process Non Associated Gas on the Utorogu field in Oil Mining Lease (OML) 34, has been commissioned.
The Oredo-Obale gas pipeline has been completed, so the 80MMscf/d Oredo gas plant can now supply gas. Also on stream is a 40MMscf/d capacity gas processing plant on the Odidi field in OML 42, the first of two phases, according to David Ige, who was Executive Director in charge of Gas and Power at the NNPC until May 2015.
The combined 270MMscf/d capacity was unlocked between December 2016 and February 2017. Nigeria can certainly do with this volume in its domestic gas market, especially for power, where gas supply has been severely constrained.
But Layiwola Fatona, Chief Executive Officer of the NDWestern Limited, a Nigerian upstream independent which holds 45% equity in the Utorogu NAG 2 plant, says that questions about gas plant commissioning are not the right ones to ask at this time.
“So what? Are you paying for the gas taken and not paid for?” he asks a reporter with Africa Oil+Gas Report. “What is the big deal about commissioning NAG2. Or NAG 3, when no one will pay for the gas being taken?”
Gas producers in Nigeria have, of recent, complained about lack of payment for gas supply to power plants mostly owned by the government.
Dr. Fatona queries: “Are we running a Father Christmas enterprise?”