Lagos - The Nigerian Petroleum Development Company (NPDC) has projected to produce 900 million Standard Cubic Feet (SCF) of gas per day by 2018.
Victor Briggs, Managing Director of NPDC said the gas production increase was part of efforts to boost national electricity supply.
Briggs said that the company planned to invest about $6.1billion or (N976 billion) to boost gas production and reduce gas supply deficit currently impacting negatively on electricity supply.
“Between 2014 and 2018, NPDC plans to grow gas production to 900 million standard cubic feet per day as well as push its crude oil production to 300 000 barrels per day.
“We intend to make an investment of about 1.8 billion dollars annually in 2014 and 2015.
"By 2016, the investment portfolio of the company will begin to scale down to about 800 million annually through 2018 which will bring total investments to 6.1 billion dollars over the period,’’ he said.
Briggs said that the ongoing expansion at the Utorogu gas and Oredo plants would enable the company to achieve the significant milestone in gas supply.
He said that the expansion programme, would on completion, enable the company to meet the needs of the domestic gas market, especially in the power sector.
“Much of the gas that will be produced from the various fields would be used to generate the electricity needed to improve supply to consumers.
"The investment is coming at a time when major oil companies have refused to make investment in gas production because of the low price of domestic gas and lack of other incentives.
“As at today, NPDC has the capacity to produce about 140 000 barrels of crude oil per day.
“If there is any breach on our pipeline or flow line, the safe thing to do is to shut down.
“The main impact on our production is really when there is a breach on a trunk line which is a big pipe which carries production from different companies’ pipe to the terminal.
Briggs also said that this ambitious target would not come to fruition until 2018, adding that the 900 million standard cubic feet, if deployed to generating electricity, was capable of churning out 3 000 megawatts.
“The essence of the trunk line is that it is cost-effective for the oil companies. Therefore, if there is a breach on such line, all the companies using it will be forced to shut down,” he added.
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page