Seplat Drives Nigeria’s Energy Transition With Investment Focus on Gas, Renewables
By Tobi Owoyimika
Seplat is leading Nigeria’s energy transition with accessible, affordable, and reliable energy, focusing on major gas and renewable energy projects that drive social and economic prosperity.
In response to the global energy transition, Seplat has developed a strategy and taking significant steps to lead the energy transition drive amongst its peers locally by making deliberate strategic choices in the development of Nigeria’s gas resources to accelerate the replacement of diesel and biomass with reliable, low-cost energy to facilitate social and economic growth.
Speaking in an exclusive interview with Energy Voice, Seplat CEO Roger Brown disclosed that the company has developed a practical model from its inception and the results have been very successful, both to Seplat and its host communities.
Brown noted that the Nigerian government sees gas as the energy transition fuel and Seplat is working towards expanding its gas capability and supply footprint in the domestic market.
He added, “Seplat is therefore taking significant strides to lead the energy transition drive amongst its peers locally by making deliberate strategic choices in the development of Nigeria’s gas resources to accelerate the replacement of diesel and biomass with reliable, low-cost energy to facilitate social and economic growth.
“Through our midstream business, Seplat is currently evaluating opportunities for 3rd party gas development across several fields and capitalizing on this infrastructure capacity growth (currently c.500MMscfd and reaching ca.800MMscfd by 2023).
“This involves expansion and development of gas processing capacity to provide an outlet for stranded gas in proximal acreages.
“We also plan to integrate along the gas value chain into LPG/CNG distribution for industries and NGVs (natural gas vehicles).
“These new gas markets will have the potential to displace extensive amounts of biomass used for cooking by most households and supply gas to power Industrial parks, large manufacturing plants, universities, hospitals, etc.
“However, we plan to end routine flaring by 2024 through flares-out projects together with a focus on maximizing the gas-to-grid for productive use.
“We will therefore continue to further evaluate and identify the potential value of establishing a position in the carbon credits market.”
Going forward, Brown also stated that Seplat is committed to becoming a major player in the renewable energy space, harnessing the abundant renewable energy resources available across Nigeria.
He continued, “The sun is Nigeria’s most abundant natural resource and the advancement in technology is improving its cost competitiveness and efficiency in power generation.
“It is noteworthy that Nigeria’s off-grid solar has an expected market growth capacity CAGR of 26% (2020-2040) and is projected to be worth nearly $17 billion by 2040.
“Seplat’s focus is to create an off-grid solar power distribution business to supply the commercial and industrial (C&I) sector and micro-grid which offers solid growth potential with long-term revenue generation visibility.
“Furthermore, we are currently in the process of decarbonizing our upstream operations and investigating the implementation of alternative renewable sources to displace diesel-powered generators to ensure optimal power utilization and efficient energy usage.
“As regards Hydrogen, Seplat currently considers this as a complex and costly option, and we are not presently considering it as a viable source of clean energy for Nigeria.
“Seplat’s strategy currently focuses on Nigeria, and we are not pursuing opportunities in other countries”.
