Seplat Delays First Gas From $650m ANOH Plant Until Q4

Seplat Energy, a Nigerian independent oil company, said on Wednesday that the commencement of production from the ANOH gas plant is now expected in the fourth quarter of this year.

The project has suffered several delays, with the first gas initially expected in 2022 but was postponed to 2023 and later 2024 as the mechanical completion was achieved on December 29, 2023. 

Seplat said operations during the second quarter focused on the completion of modification works in support of alternative commissioning gas and export routes, considering ongoing OB3 pipeline project delays.

This involved certain modifications at the Ob-Ob gas plant to enable the transportation of third-party gas to the ANOH gas plant for live hydrocarbon commissioning, it added.

“We are pleased to announce that in July the ANOH gas plant received third-party gas to begin live hydrocarbon commissioning,” Seplat said in its latest earnings report. “This work precedes the final project milestones which are planned to complete during 3Q 2025 in support of achieving first gas, which is now expected in 4Q 2025.”

It said that alongside the gas plant project execution work, much of the focus in the second quarter was on concluding commercial negotiations to export ANOH gas through the Nigeria LNG terminal, as well as with a domestic gas customer who can offtake gas directly from the plant.

“Combined, these two customers will provide sufficient contracted demand to enable the ANOH gas plant to operate at design capacity,” the company said. “Work on the OB3 gas pipeline has been halted while its owner NGIC works with its contractors to review the final stages of the river crossing. We expect pipeline tunneling works to resume in 4Q 2025.”

Gas is expected to flow to the new customers in the fourth quarter, it said.

“To ensure the gas plant completion remains on track, Seplat and its partner NGIC each injected an additional $20 million in equity during the period,” Seplat added.

The plant, a joint venture between Seplat and state-owned Nigerian National Petroleum Company, is located in Imo State and has a design capacity of 300 million standard cubic feet per day and cost $650 million.