(AGENDAWATCHDOG) – Nigerian National Petroleum Corporation (NNPC) has signed a gas development agreement with Sterling Exploration and Energy Production Company (SEEPCO) for the development and commercialization of gas from Oil Mining Lease (OML) 143, which would complement efforts by government and other stakeholders in the gas industry in stemming the high rate of gas flaring in the country.
This was made known by the Group General Manager, Group Public Affairs Division of NNPC, Dr Kennie Obateru, via a press statement issued in Abuja, in which the Group Managing Director of NNPC, Malam Mele Kyari, was quoted as saying during the formal signing of the agreement at the NNPC Towers that the execution of the deal was historic as well as a testament to NNPC’s commitment to facilitating the nation’s transformation into a gas-powered economy.
The NNPC Tsar, while revealing that the agreement would help reduce gas flaring and its environmental hazards, alongside promote gas production and utilization in the domestic market, also commended SEEPCO for its unwavering commitment to gas development and commercialization in the country which has led to the establishment of a Special Purpose Vehicle that will help expand gas utilization in the country as a cleaner, cheaper and more reliable alternative form of energy.
On his part, the Chairman of SEEPCO, Mr Tony Chukwueke, while describing the deal as an essential partnership that would help the company fulfil the pledge it made to support the efforts of the Nigerian government to eliminate gas flaring by monetizing it, also commended NNPC and the Group Managing Director for ensuring the execution of the agreement which he described central to the achievement of the company’s cardinal objective of boosting the production of Liquefied Petroleum Gas (LPG), condensate and dry gas for the Nigerian market, adding that the company has invested about $600 million for that purpose.
Potential Impact: Coming at a time when the Federal Government is shifting focus to gas as an alternative source of energy, especially with the increase in the retail pump price of petrol, this initiative, like many others by the government, will help facilitate the quick adoption of alternative sources of energy. It will also help reduce the high rate of gas flaring in the country.