Isiaka articulated that this initiative is deeply rooted in Seplat's overarching vision to establish itself as a dominant force in both the domestic and international gas sectors. A key catalyst for this strategic move is Seplat's recent acquisition of Mobil Producing Nigeria Unlimited (MPNU), a transformative deal that has substantially augmented the company's gas reserves and existing infrastructure. He revealed that the newly acquired MPNU assets hold in excess of 14 trillion cubic feet (tcf) of gas, complemented by readily available processing and distribution networks.
"These substantial reserves are strategically located in close proximity to existing infrastructure, which includes three compression hubs boasting a combined processing capacity of 1.7 billion cubic feet per day," Isiaka elaborated. He further explained that the immediate priority involves upstream investments to facilitate the extraction and transportation of this gas to these existing facilities, followed by efficient pipeline delivery to onshore terminals.
Seplat Energy has a well-established track record of supplying gas to fuel power generation and various industrial applications within Nigeria. Now, the company is setting its sights on expanding its operational footprint beyond national borders to capitalize on burgeoning international demand for natural gas. Seplat firmly believes that natural gas will play a pivotal role in driving both domestic and global economic growth, as well as facilitating the ongoing energy transition towards cleaner energy sources.
"Our strategic focus encompasses both robust domestic supply and the development of a significant export capacity," Isiaka affirmed. "We hold a strong conviction that gas should be the cornerstone of Nigeria's economic advancement, and we are steadfast in our commitment to ensuring reliable energy access for Nigerians while simultaneously making a substantial contribution to the nation's foreign exchange earnings."
Highlighting Seplat's current operational capacity, Isiaka noted that the company's combined gas processing capacity stands at approximately 550 million standard cubic feet per day (MMscfd), distributed across its Oben and Sapele gas processing plants. However, the current output falls short of this capacity by around 200 MMscfd. In response, Seplat is actively exploring collaborative partnerships with nearby gas suppliers to optimize the utilization of its existing processing infrastructure.
Isiaka also provided a progress update on the highly anticipated Assa North-Ohaji South (ANOH) Gas Plant, which boasts a significant processing capacity of 300 MMscfd and is nearing its completion phase. While the initial development plan envisioned dedicating ANOH's entire output to the domestic market, Seplat is now strategically evaluating potential export opportunities to maximize the economic value derived from this significant asset.
"In the near-term horizon, we may find it necessary to explore alternative off-take avenues, and this includes the possibility of engaging in export activities," Isiaka stated.
Furthermore, Isiaka underscored the critical role that indigenous Nigerian energy companies, such as Seplat, are playing in spearheading Nigeria's energy transition initiatives. "We are actively assuming a leadership position in this crucial endeavor, but its success hinges on effective collaboration across the entire energy value chain," he emphasised.
Seplat's strategic foray into gas exports comes at a crucial juncture for Nigeria, as the nation actively seeks to diversify its revenue streams and bolster its non-oil foreign exchange earnings amidst persistent fiscal and trade imbalances. With the global appetite for cleaner fuels steadily increasing, industry analysts and stakeholders widely agree that gas exports present Nigeria with a promising pathway towards meaningful economic diversification and sustainable growth.