Energy
Gas development, a major carbon reduction move – Seplat Energy
Yemie ADEOYE
Dubai, UAE- SEPLAT Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian and London stock exchanges, has identified its gas development programmes as a major boost for Nigeria’s energy transition agenda as well as the global call for carbon reduction.
Roger Brown, The Chief Executive Officer, Seplat Energy Plc, said this while addressing the media at the recently concluded Africa Oil Week (AOW) in Dubai, United Arab Emirates.
Gas Plant
According to the Seplat Energy CEO, most developed countries currently have gas grid bases forming a strong pedestal for renewables, which is far beyond what is obtainable in Nigeria where the grid base is diesel power.
“To transit to renewables, you need a grid base that works. So, our Decade of Gas mantra in Nigeria is aimed to provide the right grid base for that transition and Seplat Energy is well aligned to that. If you do not have the right grid base and want to go the way of renewables, you could end up going off-grid with small scale solar panels all around. It is important for the world to understand the peculiarities of Nigeria and that the country needs the right base to transit to renewables.”
Mr. Brown also spoke in a panel session dubbed ‘Upstream Value Creation: Unbounded Opportunities Post-COVID’ where he outlined the company’s business strides and as well as its future strategies. He also spoke on the Company’s values and continuous partnership with the AOW Brand at the AOW Drinks Reception sponsored by Seplat Energy.
Mr. Brown added: “Nigeria must have energy which is right for its population. It is got over 200 million people today and by 2050, there would probably be over 400 million Nigerians in this planet, which makes it the third most populous place in the world. For the 400 million people expected, we need to provide the right infrastructure. If you don’t, you are going to have a population migration as the average age in the country today is 18.”
He said Seplat Energy’s business plans are on three-pronged and there are three pillars to it. The pillar one, he noted, is the upstream oil and gas, where the Company is a big producer (independent) in-country.
“The pillar two is our gas processing business with existing and efficient gas plants, and by early 2023, we will be probably the biggest gas processor in-country. In our gas value chain, we have a critical model for electrification in- country. Our pillar three is the renewable business, and we are making very strong intent to say we are going to give the transition energy that is right for Nigeria. There is no point designing what is just good for other parts of the world and does not address the concerns in the areas where we operate,” he noted.
He explained, these pillars are there to not only deliver the right energy mix, but other issues prevalent in the Nigerian space, adding that: “Nigeria has been described as a rich oil producing country, but there is more gas. The federal government has identified this and has put forward the Decade of Gas narrative. The gas profile would last longer than that of oil as gas could be produced for a much longer period, and is an efficient fuel.
“The benefit of gas is very clear: it is a carbon reduction energy source today. Currently, Nigeria’s electricity source is predominantly off-grid diesel. Gas-fired power displaces the diesel option and has CO2 emission reduction of 30 to 50 per cent depending on the technology deployed. So, for every molecule of gas we put into the market, we displace carbon. By displacing diesel-fired power, we are actively reducing carbon. But for Seplat Energy, this carbon reduction has to be proven.“
For Seplat Energy’s social programmes, he said the Company had developed bespoke models based on the needs of its host communities, which is the reason its partnership with the communities has remained progressive. “Apart from our educational and health interventions and other areas of empowerment, we are still seeking more ways to grow and scale the partnership,” he stressed.
Speaking on the Company’s journey so far, Mr. Brown said it has been a huge amount of development in sub-Saharan Africa as far as the energy sector is concerned, of which the developments have been driven largely by the IOCs and also the national oil company working with them.
According to him, there hasn’t necessarily been a country-specific development, and that is where the opportunities lie.
He explained: “I will give an example of the Nigeria, which is where we are from. We bought our assets from the IOCs in 2010, and have continued to grow them over the years. We have been very successful in acquiring mature assets divested by the IOCs in Nigeria and growing the reserves base and production from those assets. When the company began operations in 2010, our primary assets (OMLs 4, 38 & 41) had 2P reserves of 148 MMboe. Over the last 11 years, we have executed several projects focused on converting stranded 2C resources (in Unappraised Discoveries and Partially Appraised Fields) and some producing fields) to 2P reserves, and have realized an organic growth in the assets’ 2P reserves to the current level of 275 MMboe. Over the same period, we have also drilled over 60 development wells in the assets, resulting in an increase in the average production from c.18 Mboepd to the current rate of c.40 Mboepd.
“Over the years, we have put a lot more infrastructure in place to develop the assets and as we add more assets, what we realized was that the assets themselves haven’t been generally as much as they would be in terms of output. A lot of technologies moved on massively, and the deployment of those technologies (simple onshore technologies as is the case for us) hasn’t been implemented to the level that is should be. Even with shale in the United States, everyone hitherto thought it was uneconomic; not until it was established that not all shale are the same. The companies and technologies in that shale spece got better and better, and there were new ways to improved the shake experience. Therefore, in Africa, there is a relapse of technologies coming in techniques and efficiency-wise. So, there is a lot of hidden value in developed and appraisal assets.
“That is what value creation is. It all depends on company you are looking at. Seplat Energy is a driver of growth in Nigeria. We’ve looked at the map and done our analyses, and have able to determine contingent resources into reserves and produced that. When you are buying assets that you don’t put a big valuation on contingent resources, then there huge unlocked potential.”
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.
The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.
The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.
Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.
“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.
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A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.
Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.
They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.
Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.
“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.
The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.
Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.
Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.
The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.
Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.
The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.
According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.
Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.
“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.
The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.
The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.
Fears of renewed US military strikes on Iran and escalating threats to energy infrastructure across the Middle East heightened concerns about global crude supplies have pushed-up crude oil prices in the global market.
These factors pushed crude oil prices over $117 a barrel in the global market, even as oil theft and pipeline losses in Nigeria fell by 82.9 percent in five years, from 102,900 barrels per day (bpd) in 2021 to 17,600 bpd in the first seven months of 2026, amid fresh concerns about further increases in lost volumes after years of decline.
Nigeria’s oil benchmark, Brent crude, climbed by about 3.5 percent to cross $117 a barrel during trading before easing to just above $116, still up approximately 2.7 percent.
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The latest rally followed reports that Washington was considering fresh military strikes against Iran after the November 3 midterm elections, raising concerns that the conflict, now in its eighth month, could escalate further rather than move towards a diplomatic resolution.
Iran had threatened to attack oil facilities, undersea cables, data centres and artificial intelligence infrastructure across the Gulf if the United States and Israel launched a new offensive against the country.
Recall that Brent crude traded at about $72 a barrel in February, before the war began, but surged to about $126 a barrel by the end of April as the conflict intensified and concerns mounted over supply security.
Tensions rose again during the week following claims by Iran’s Islamic Revolutionary Guards Corps (IRGC) that it struck four commercial vessels in the Strait of Hormuz on Wednesday.
The US ordered some diplomats and family members of American government employees to leave Saudi Arabia, which had faced continued attacks by Houthi rebels operating from Yemen.
From January to September 2026, the domestic refineries in Nigeria received 156.52 million barrels of crude oil.
Of the volume, 125.85million barrels (80.4 percent) were sourced from in-country while 30.66 million barrels (19.6 percent) were imported.
This was contained in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Factsheet September 2026 released on Thursday.
The Factsheet specifically revealed that in September 2026, 38.7 million litres of the Premium Motor Spirit PMS (petrol) were received per day, crashing from the 50.5million litres per day received in August by 23 percent.
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Stock sufficiency in September was 23.9 days, declining below the 30-day threshold.
The NMDPRA stressed that while 28.7million litres were supplied per day from domestic sources, declining by 21 percent from the previous month, 10.2 million litres were imported, reducing imported petrol by 30 percent in the period under review.
According to the Factsheet, “Domestic refining contributed about 65 percent of the national petrol requirement (consumption) in September 2026, and about 74 percent of receipts, supplemented by 26 percent of imports”.
The Dangote Refinery and Petrochemicals Company (DPRP) is the only domestic refinery which currently produces petrol in Nigeria.
The report added that the DPRP produced 47.22 million litres per day of PMS in September, supplying 28.50 million litres per day to the domestic market and exporting (35.2 percent) 15.47 million litres per day.
On capacity utilization, the refinery recorded 105.98 percent of its 650,000 barrels per day capacity in the period under review.
The Factsheet disclosed that 8.7million litres of diesel were consumed in the month under review.
The NMDPRA revealed that modular refineries supplied 4.3 percent of domestic diesel consumption in September.
Aradel and OPAC, said the Factsheet, operated below optimal capacity due to feedstock challenges and maintenance shutdowns.
September diesel receipts, according to the NMDPRA, were the lowest of the 13 months, driven by low imports and low domestic evacuation amid high prices.
The Factsheet said, “Nigeria’s energy-sector transformation is progressing. Domestic refining contributed about 65 percent of the national petrol requirement (consumption) in September 2026, and about 74 percent of receipts, supplemented by 26 percent of imports.
“Priority gas projects have reached significant mileage, with the AKK pipeline at 84 percent completion as of September 2026,” the Factsheet pointed out.
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