International Oil Companies (IOCs), Seplat and other local players in the industry, will soon meet on the need to expand the domestic gas market and further make the product available to thermal plants across the country, it was gathered in Lagos.
The former Chief Executive Officer, Nigerian Liquefied and Natural Gas (NLNG), Dr Godswill Ihetu, said the country witnessed a drop in supply of gas to power plants, by 97million standard cubit feet per day(mmscpd) between March, last year and January, this year.
The trend continues in June, this year, as daily natural gas supplied to power plants decreased by 1.35 per cent to 751.18mmscfd, equivalent of 2,896Mw.
In a telephone interview, Ihetu said three multinational oil companies, namely Shell, Chevron and Mobil, have been supplying gas to the market, adding that they are developing new market frontiers, to deepen the use of gas in the industries.
He said Seplat Petroleum Development Company is one of the big suppliers of natural gas to thermal plants, adding that the firm is planning to increase its activities.
Seplat, he said, is planning a Joint Venture (JV) to raise $700 million for the development of a gas plant.
The project, known as Assa North-Ohaji South, is billed for completion next year, stressing that the project would help in providing gas to plants.
“Right from inception of NLNG three decades ago, exportation of natural gas gas been the responsibility of the firm. The government has directed international oil firms and their local counterparts to supply gas to power plants, which 70 per cent of electricity, which is consuming locally. That is why I made bold to say that NNLG was not established to meet the needs of the power sector. IOCs and local oil companies, have been directed, by the government, to handle such roles,” Ihetu said.