Pan Ocean set to hit 200scf/d with phase 2 of Ovade-Ogharefe Gas Processing Plant
Pan Ocean, operator of OML98, Joint Venture with the Nigerian National Petroleum Corporation (NNPC), Production Sharing Contract OPL 275 and Ovade-Ogharefe Gas Processing Plant (OOGPP), said it will soon hit 200mscfd from its current capacity of 130 scfd by the time its phase 2 fully comes on stream. In addition, the company will also produce 450 metric tonnes of LPG.
Monday Ikhureigbe, Operations Base Manager, while addressing the Senate Committee on Gas during the facility visit of the plant by the committee added that the company is in the fore front of gas flare-out in the country.
The OOGPP Phase 2 off-take project incorporates the production, storage and dispensing of Propane, LPG and Lean Gas. Pan Ocean is also constructing the 67km deeply-buried Amukpe-Escravos pipeline.
Though, there has been an improvement in the LPG sector in Nigeria, supply gaps and volatility in the market have not ceased. In 2007, the LPG supplied to the Nigerian market was 70,000 tonnes but with the current capacity being over 300, 000 tonnes, the country still witness supply uncertainty. Experts say the country should be looking forwards at least, 5 million tonnes of LPG per annum to satisfy the market. Thus, the OOGPP Phase 2 when fully operational will help to close the supply gap in the sector.
Nigeria can gain a lot from increased consumption of LPG. Experts say that 19 states in the North are suffering from desertification as a result of use of firewood for cooking. If there is wide use of LPG, this would stop and health risks reduced. It is also more beneficial to use LPG because it has various applications and it can provide revenue for the government. It can be used for power generation. It can also be used in agriculture and powering of air condition.
“Ovade-Ogharefe Gas Processing Plant is a huge investment and we are looking forward to the benefits Nigeria will derive from the company by the time Phase 2 of the gas processing and all the other aspects like the liquefied petroleum gas (LPG) and Propane comes on line. We are passionate about gas. It’s time to domesticate all the advantages that can accrue through ramping up utilization in the country”, said Senator Bassey Akpan, chairman, Senate Committee on Gas.
Senator Akpan commended Pan Ocean Oil Company adding that members of the committee were impressed with the progress the company has made. He said that due to the significant importance of Ovade-Ogharefe Gas Processing Plant to domestic gas utilization, the committee will pay attention and monitor the project closely.
Pan Ocean has been in Joint Venture with the Nigeria National Petroleum Company (NNPC) in respect of OML 98. As part of its strategic growth initiative, Pan Ocean acquired the Oil Prospecting License (OPL) 275 and signed a Production Sharing Contract (PSC) with the NNPC on OPL 275.
In 2009, Pan Ocean was one of the few companies to sign on to the Carbon Credits scheme offered by the Clean Development Mechanism (CDM) of the Kyoto Protocol. The completed 130MM SCF/D (million standard cubic feet per day of natural gas) OvadeOgharefe gas processing plant is registered under the CDM and is currently the largest carbon-emission reduction project in West Africa. In addition, the corporation has expanded its business with the construction of the 67km Amukpe Escravos pipeline project; making Pan Ocean the first indigenous producing oil and Gas Company to embark on such a major pipeline project.
Pan Ocean adopts a responsible and pro-active approach towards safety and environmental management in relation to operations; and is committed to upholding good corporate citizenship by delivering superior returns to all its stakeholders, tax royalty payment to government and support for improving the communities where it operates. The Company employs over 500 people of which more than 95 percent are Nigerians.
The Ovade-Ogharefe plant is the largest operational carbon emission reduction plant to be recognized in Sub Saharan Africa. Pan Ocean is the first company to sign the Gas Sales Aggregation Agreement (GSAA) with the Federal Government of Nigeria. The first company to start supply of gas to Nigerian Gas Company (NGC) for use by the defunct PHCN. Pan Ocean remains supportive of the Federal Government’s plan to end gas flaring in Nigeria and it is also supportive of Nigeria’s effort to attain stable power supply through the efficient delivery of gas to Egbin power stations.
FRANK UZUEGBUNAM