Seplat Plc is all set to invest a whopping $250 million in a new gas plant in Sapele, Delta State. The Director of New Energy at Seplat Plc, Effiong Okon, spilled the beans about this exciting plan during the Nigeria Oil and Gas Outlook event in Lagos. Okon emphasized the company’s commitment to the energy landscape and highlighted the significance of the Sapele gas plant investment. This new plant is expected to make a big impact by delivering a substantial amount of Liquefied Petroleum Gas (LPG) to the market. Additionally, Seplat’s Joint Venture gas processing facility in Imo State is on track to be completed by December, with plans for commissioning in January 2024. Okon also stressed the pivotal role of the private sector in driving investments in the oil and gas sector and highlighted the importance of government support through policies and ensuring a secure environment for sustainable growth and development.
Meanwhile, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, has raised concerns about Nigeria’s low production of crude oil and gas. Wabote warned that if efforts are not made to increase the current low production numbers, Nigeria might have to resort to importing crude oil for its upcoming and existing refineries. He urged industry stakeholders to initiate efforts to reverse the situation and emphasized the crucial role of petroleum explorationists in the energy mix. Wabote also highlighted the importance of focusing on gas, as it is no longer just a transition fuel but the destination fuel. He commended the Federal Government’s determination to sustain the gains realized in the oil and gas industry and expressed readiness to support various oil and gas initiatives that would ensure patronage of local investments, boost investors’ confidence, and create jobs.
In the energy space, there are growing concerns about the challenges faced by wind and solar power stocks. Germany recently agreed to underwrite a 15 billion Euro bailout for Siemens Energy after its wind power subsidiary booked massive losses. The rising costs of raw materials and technology necessary for the energy transition have been a major issue, leading to higher prices and supply challenges. This has impacted companies like Denmark’s Orsted, which suffered market cap losses and had to cancel offshore projects due to rising costs. The transition to renewable energy is facing obstacles such as supply chain disruptions, delays, and uncertainties about future demand, which are hindering the smooth movement of goods and materials.
Despite the challenges, there is hope for increased investment in the oil and gas sector, as TotalEnergies is gearing up to take Final Investment Decision (FID) on UBETA Oil Mining Lease, OML 58 in the first quarter of 2024. This project is expected to contribute to exponential gas supply to the Nigerian Liquefied Natural Gas (NLNG) Plant and is part of TotalEnergies’ response to the Federal Government’s gas commercialization and domestic utilization initiative. The project aligns with Nigeria’s Decade of Gas Policy, aiming to position the country as a regional gas hub and offer economic opportunities and sustainable energy solutions.