Seplat has signed a five-year Gas Sales Agreement(GSA) with Azura Edo Independent Power Project, to supply 116 MMscf/d at $3/Mscf from 2017, the company says in its interim report.
The Nigerian E&P firm assures that its expansion of the Oben gas processing facilities remains on track, to enable the company expand production, in order to meet the fast growing domestic demand for gas.
Seplat is working to increase its gas production capacity to 390MMscf/d by 2017, from around 150MMscf/d currently.
The Azura-Edo IPP comprises a 450MW open cycle gas turbine power station; a short transmission line connecting the power plant to a local substation and a short underground gas pipeline connecting the power plant to gas from the Oben facility. It represents the first phase of a 1,500MW power plant facility. This first phase of the plant is expected to come onstream in 2017.
The company says its gas strategy “achieved a major step forward” with the GSA for the Azura Edo independent power project. This contract with Azura “underpins Seplat’s major investment programme to upgrade the Oben gas plant and expand our domestic gas business”, SAYS Austin Avuru, Seplat’s Chief Executive Officer.