Nigerian energy giant, Seplat Energy Plc has announced that it has committed $11.5 million towards projects that would end routine gas flares in its operations by 2024 and also reaffirmed its aggressive and unwavering commitment to sustainability and energy transition.
This was stated by the Chief Operations Officer, Seplat Energy, Mr. Sampson Ezugworie, at the Society of Petroleum Engineers (SPE) Oloibiri Lecture Series and Energy Forum 2023, held recently in Abuja.
The theme of the forum was, “Effective Gas Resources Utilisation: A Lever for Enhanced Energy Security and Achieving Net-Zero Emission Goals in Nigeria.”
He noted that the company’s ability to maintain the lead in the Nigerian gas sector was hinged on a strong Environment, Social, and Governance (ESG) framework, which he said has provided the strong foundation for Seplat Energy’s gas business and its decarbonisation projects.
Ezugworie, who represented the Chief Executive Officer, Seplat Energy, Mr. Roger Brown, noted that the company had been leading in domestic gas supply in the country, with about 300 standard cubic feet per day (300scf/d), translating to about 30 per cent of Nigeria’s gas-to-power supply.
He reiterated the company’s commitment to energy transition, energy security and sustainability, noting that Seplat Energy’s Corporate Social Responsibility (CSR) programmes had grown over the years with immeasurable impacts on the people.
“We have a very aggressive programme to eliminate flares by 2024, through a combination of solutions. We have created a New Energy Directorate, with a mandate to look into the power and the entire energy transition value chain,” the COO affirmed.
He said the company’s primary commitment was to reduce its Greenhouse Gas (GHG) emissions resulting from direct operations, adding that Seplat Energy has established a broad set of investment activities designed to reduce emissions from its operated facilities and offset residual emissions.
“Seplat Energy’s Flares Out project, which forms part of our commitment to achieving Net Zero by 2050, is on schedule to reach the target of ending routine flares by the end of 2024.
Ezugworie said, “In 2022, improvements in performance of the AG compressor in Oben and Amukpe, alongside regular asset integrity checks and other facility improvement activities, were effective and AG flare volume was reduced by 18.2 per cent at Oben (5.7 MMscfd against 6.97 MMscfd in 2021) and by 39.9 per cent at Amukpe (1.1 MMscfd against 1.83 MMscfd in 2021).
“The Seplat boss added: “Our diesel replacement programme seeks to increase the use of gas, a less carbon intensive fuel for power generation and where feasible, solar power is also being considered. We are piloting solar at our Amukpe warehouse to power equipment on site and plan to power the security outposts located around our operations using solar energy in 2023.”
He added that the company had also committed $10.8 million towards installing gas compression facilities at the flow stations in Amukpe, Oben, and Sapele, and $0.7 million towards incineration at the Amukpe flow station.
Upon completion of these projects, he said Seplat Energy expects to improve its gas handling capacity and reduce flares by approximately 30 MMscfd in 2023 and 20 MMscfd in 2024, which will in turn monetise flare gas in line with its corporate strategy and the national flare gas commercialisation initiative.
