Seplat switches on new gas plant, begins sales to Indorama and others

Seplat Energy Plc has begun supplying natural gas from a major new facility in the Niger Delta, a development that could lift the company’s earnings while easing gas shortages for manufacturers and power users.

The Nigerian energy producer said gas started flowing on Friday from the newly completed ANOH gas processing plant, which has a design capacity of 300 million cubic feet per day, following regulatory approval and the completion of an 11-kilometre export pipeline.

Initial supplies are being delivered to Indorama’s petrochemical complex, one of Nigeria’s largest industrial gas consumers.

Production is currently running at between 40 and 52 million cubic feet per day, with volumes expected to rise steadily as the facility ramps up. The project is also producing liquid by-products, including condensate, which can be sold separately and provide an additional revenue stream.

For Seplat, the start of gas sales marks the transition of a long-awaited project from construction to cash generation. The company will earn income both from gas sales into the plant and from dividends linked to its 50% ownership of the processing facility.

“ANOH will provide material income streams for Seplat, reduce our carbon intensity and contribute significantly to our 2030 production target of 200,000 barrels of oil equivalent per day, set at our recent Capital Markets Day,” Chief Executive Officer Roger Brown said.

“It will also increase energy access for Nigerians in terms of both power and clean cooking fuel for local communities, while advancing our mission to support economic prosperity in Nigeria,” he added.

Gas supply constraints

The start-up comes as Nigeria continues to face persistent gas supply constraints, driven by underdeveloped pipeline infrastructure and delays in major transmission projects.

Although the ANOH plant was originally designed to evacuate gas through a larger national pipeline, Seplat opted to use an alternative export route to commence sales sooner rather than wait for that network to be completed.

Beyond industrial customers, the company said it plans to supply gas to Nigeria LNG (NLNG), the country’s main gas export project, under an interruptible offtake arrangement. If executed, this would open a second sales channel linked to international markets.

Construction of the key OB3 pipeline, led by the Nigerian Gas Infrastructure Company (NGIC) and originally designated as the primary evacuation route for ANOH gas into the domestic market, has since resumed. A revised completion timeline is expected to be announced in due course.

The ANOH gas plant was developed by ANOH Gas Processing Company (AGPC), an incorporated joint venture between Seplat Energy and NGIC. The integrated facility comprises two 150 MMscfd gas processing trains, liquefied petroleum gas (LPG) recovery units, condensate stabilisation units, a 16-megawatt power plant, and supporting infrastructure. It was built to operate with zero routine flaring.

Across the unitised OML 53 and OML 21 fields, the ANOH project unlocks an estimated 4.6 trillion cubic feet of condensate-rich gas resources.

Seplat will derive value from two main income streams: wet gas sales from OML 53 into the ANOH gas plant, and dividends from its 50% equity stake in AGPC.

LPG produced from ANOH, combined with output from Seplat’s Sapele and Bonny River Terminal (BRT) facilities, is expected to position the company as a leading supplier of clean cooking fuel to Nigeria’s domestic market.

The project will also process previously flared gas from the Ohaji field, supporting Seplat’s onshore End of Routine Flaring programme, a key commercial and sustainability initiative.