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The Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Development Company, a leading Nigerian oil and gas company, have signed five agreements to expedite the development of a project aimed at delivering about 3.4 billion standard cubic feet (bscf) of gas per day by 2020.

According to a statement released by the national oil company on Monday, the project is part of efforts to bridge the expected gas supply gap in the country by 2020. Called the Assa North and Ohaji South (ANOH) gas development scheme, the project is one of the seven Critical Gas Development Projects (7CGDP) aimed at boosting gas production and infrastructure development in Nigeria.

Engr Saidu Mohammed, NNPC’s Chief Operating Officer – Gas and Power, explained that NNPC and Seplat are promoting a special purpose vehicle – known as ANOH Gas Processing Company (AGPC) -- to develop, build, operate and maintain the ANOH Gas Processing Plant, with an initial capacity of 300 million standard cubic feet per day in Imo State.

Mohammed, who represented the Group Managing Director of the NNPC, Dr. Maikanti Baru, at the signing event, gave the assurance that NNPC would do everything to ensure the project is successful. He urged AGPC to ensure the project is delivered on schedule, within budget and to specification, stressing that it was designed as a world-class gas processing plant with capacity to deliver between 3 billion and 3.4 billion standard cubic of gas daily.

“Following the execution of Heads of Terms (HoT) by the Nigerian Gas Processing and Transportation Company (NGPTC) on behalf of the NNPC, Seplat and AGPC on December 19, 2017, the Steering Committee for the AGPC project has provided the leadership and broad guidance for the development and finalisation of the various commercial agreements required to underpin the project,” Mohammed stated.

The CEO of Seplat, Austin Avuru, described the ANOH Gas Processing Plant as a landmark project which captures the essence of the gas infrastructure development initiative of the Federal Government as encapsulated in the Seven Big Wins and 12 Business Focus Areas programmes.

He expressed confidence that AGPC would deliver the project within the next 18 months and achieve its objective of being a key gas supplier to both the domestic and export market.

The signed agreements include the AGPC Shareholders Agreement between AGPC, the Nigerian Gas Processing and Transportation Company (NGPTC) and Seplat; AGPC Share Subscription Agreement between AGPC, NGPTC and Seplat; Wet Gas Sales and Purchase Agreement between NNPC, Seplat and AGPC; Gas Sale and Purchase Agreement between AGPC and Nigerian Gas Marketing Company (NGMC); and Gas Marketing Agreement between AGPC and NGMC.

NGPTC and NGMC are Gas and Power subsidiaries of the NNPC.