All articles in the Gas Monetization Section:

Three Companies Bid To Purchase Oando Gas & Power

Three companies: Helios, Quantum Power and the American equity fund KKR were in a bid to purchase Oando Gas & Power, the subsidiary of Oando Plc that’s involved in natural gas distribution and captive power solutions.

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Shell’s Trickle Production at Agbada Is Symbolic of Nigeria’s Gas Challenges

Shell Nigeria gleefully reported in the last fortnight, that it had ramped up to 20MMscf/d of gas, in the Agbada Early Gas Production Facility (EGPF), into its eastern domestic gas network.

This is a figure that is about a quarter of the plant’s installed capacity. The widely distributed press release about the ‘achievement’ is symbolic of the crying inadequacy of natural gas supply into the Nigerian electricity system, where over 4,000MW of power generation capacity is idled by lack of natural gas to supply them. At the moment, there are very few projects under construction that are aimed at boosting gas supply into the electricity system in a short amount of time.

They include the NPDC operated 150MMscf/d Utorogu NAG 2, which was expected to have been commissioned by August 2015 and the Seplat-operated increase of its Oben Processing Plant capacity from 300MMscf/d to 525MMscf/d. The country’s publicly generated power, which hit 5,074 megawatts on February 2, 2016, has dropped by 50% in the last two weeks due to gas shortages and transmission challenges.

The electricity industry is getting less than 70% of the 1Billion standard cubic feet per day it clearly needs to produce just 4,000MW of gasfired electricity. Still, Shell’s Corporate Media Relations Manager, Mr. Precious Okolobo, excited about his company’s Agbada achievement, explained that a peak production of 40MMscf/d is expected to be achieved, sometime soon, in addition to oil production of about 2,500 barrels per day.

WAGP Exported Less than 60MMscf/d Average in 2015

The total volume of natural gas export through the West African Gas Pipeline in 2015 was 21.62Billion cubic feet, which translates to an average of 59Million cubic feet of gas per day(MMscf/d), according to the December 2015 edition of the Monthly Report of the NNPC, the Nigerian state hydrocarbon company.

WAGP is a five year old facility constructed to deliver gas from Nigeria to Benin Republic, Togo and Ghana. The contracted volume from WAGP to Ghana, the largest economy of the three, is 133MMscf/d. The country barely received a third of that volume for most of 2015.

The best month of WAGP delivery in that year to the three countries was September, when the pipeline pumped an average of 94MMscf/d. But that figure is a stark outlier in the data. The closest behind it is 79MMscf/d recorded in August 2015, followed by 61MMscf/d in July 2015. Ghanaian officials have lamented severally, that the unreliability of gas supplies from the WAGP is a major reason for electricity outage in their country.

Botchwey’s Board Retires, No Mention of Takeover of Ghana Gas by GNPC

ghanaThe statement of retirement of the Board of Ghana Gas Company did not mention the company’s transition into a subsidiary of Ghana National Petroleum Corporation, the state hydrocarbon company.

Instead Kwesi Botchwey, Ph.D, former Minister of Finance and the chairman of the retiring board, spoke of  two things; the setting up of administration of Ghana Gas and delivery of the  Western Gas Infrastructure  and the wrap up of the project’s first phase.

The Board of Ghana National Gas Company (Ghana Gas)was set up in July 2011. It established the administrative and operational structure of the company from scratch; built an onshore gas processing facility to process raw natural gas and produce various products including lean gas for power production, liquefied petroleum gas and other natural gas liquids for domestic and industrial use and implemented the Western Gas infrastructure project with the successful  commissioning of the Gas processing plant, associated pipelines and auxiliary equipment in November 2014, “despite a number of incipient challenges”.

Botchwey stated, in a note released as an adjunct to the retirement notice, that the anticipated completion of  the 2nd  mandatory shut down of the Gas Processing Plant at Atuabo on January 31, 2016, would symbolize the successful completion of Ghana Gas’ first year of operations.“The event marks a major milestone signifying the completion of the first phase of the Western Gas Infrastructure Project.”
What Dr. Botchwey didn’t mention, which was as significant as the operational issues, was that a process was on course to transfer its ownership of Ghana Gas to the GNPC, as a limited liability company.

He did say, in November 2014, that“the Board of Ghana Gas had“not passed any resolution nor has the Board filed the necessary papers to effect the change in ownership, nor held a single meeting with the Transaction Advisor and it cannot therefore be said that the process has been undertaken and concluded”.

As of the time of the exit of the Board, from all indications in Botchwey’s statement, Ghana Gas had not passed on to GNPC.

Swiss Company Plans Virtual Gas Pipeline in Nigeria

Geneva based Powergas International Limited (PIL)

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Lindi is ready for LNG

By Sa’ad Bashir, in Dar es Salaam

The Tanzanian government is officially ready to host the construction of Liquefied Natural Gas (LNG) Plants(Trains) at the port town of Lindi in the country’s southeast.

The government has paid $6Million (12 billion shillings) for assessment and compensation of 450 people in the backwater coastal town, located on Lindi Bay, 450km south of Dar es Salaam.

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No Gas Yet In New Utorogu Plant

By Toyin Akinosho, in Warri

Nigeria has a brand new gas processing plant and it is capable of processing one hundred and fifty million standard cubic feet of gas per day (150MMscf/d). But not a single molecule of natural gas has been introduced into the facility.
When it comes on stream, the Utorogu NAG 2 Plant will be the second gas processing plant to be commissioned in the country in 2015. With Seplat’s 150MMscf/d plant hooked up in February 2015, Nigeria has added 300MMscf/d of gas processing capacity in the last eight months.

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Ghana Gas Master Plan “In Sight”

By Toyin Akinosho

The Ghanaian government is planning to build a pipeline to connect the Wet African Gas Pipeline (WAGP) in Takoradi,

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ENI Will Produce 500MMscf/d in Egypt’s Noras by Mid 2016

By Mohammed Jetutu, in Cairo

The European company is on a ‘gassy’ roll in North Africa’s largest economy

Italian major ENI will be delivering half a billion cubic feet per day in Egypt’s Noras field by mid- 2016.

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With Zohr, Egypt Demands Back Its Gas Exporter Status

By Toyin Akinosho, Publisher

With ENI’s discovery of what the company describes as a “supergiant” pool of gas in the Mediterranean, Egypt is looking forward to clawing back its gas exporter status.

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