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Gas Utilization

Nigerian Agip Oil Company (NAOC), benefiting from over 60 year composite experience of eni in natural gas sector, pioneered the conservation and development of the nation’s gas resources, and has executed several gas development projects targeted both at the domestic and the export market.

Through the implementation of a comprehensive Gas Master Plan, NAOC currently utilize about 93 percent of its produced gas.

The Company built the first natural gas recycling plant at Akri-Oguta (in joint venture with Shell). It later invested in large scale Gas injection plant in 1985 with the construction of Obiafu-Obrikom Gas Plant. This was followed by the Kwale Gas Plant in 1987.

On the domestic front and in line with Government’s objective of promoting the use of this valuable resource, NAOC expanded the Ob-Ob plant in 1994 to supply NGL feedstock and fuel Gas to Eleme Petrochemical Company Limited, who own a plant to produce polymers. This was the first investment of its kind in Nigeria dedicated exclusively for domestic market.

On the 1st April, 2005, NAOC commissioned the first phase of the first upstream combined cycle IPP (480MW) in Nigeria at Okpai, Delta State in its commitment to assist the Federal Government to provide reliable and dependable power supply required for the nation’s economic development. This was the first Joint Venture sponsored IPP in the country. The plant has proved to be the most reliable source of power supply in Nigeria.

In addition, NAOC signed a Gas Supply Agreement with the Government of Rivers State for the supply of 36 mmscf/d of gas to the state’s owned power plant located in Omoku, ONELGA. It was a unique initiative by NAOC to support the Government in promoting the economic and social development of the state. NAOC is also meeting all its allocated domestic gas supply obligations.

Recently NAOC signed a Gas Supply Agreement with Indorama Eleme Fertilizers and Chemical Limited for the supply of 100 MMscfd of gas to a fertilizer plant in construction phase to be operational in 2016 and located in Eleme, Rivers State.

Furthermore, NAOC is negotiating a Gas Supply Agreement with Niger Delta Power Holding Company to supply 60 MMscfd of gas to supply an IPP open cycle located in Omoku, Rivers State.

On gas export, Eni SpA is a shareholder in the Nigeria LNG project, and NAOC JV is a gas supplier for the six trains of the LNG Terminal located in Bonny. NAOC JV was the first company who supplied the test gas for the project start-up in 1999.

To further boost the utilization of the gas resource in Nigeria, NAOC’s parent company, eni SpA, with other joint venture partners are developing a new Liquefied Natural Gas (LNG) plant in Brass, Bayelsa State. NAOC JV will provide about 40% of the total gas supply requirement for the two train Brass LNG complex.

The proposed 5 million tons per year for each of the two train LNG plant will contribute substantially to gas utilization and economic development of the country.

With the execution of these projects, which are part of the comprehensive Gas Master Plan (GMP), NAOC is committed to the gathering and channeling of its associated gas for monetisation, and achieving zero gas flaring at all its sites.

As part of SPDC JV, NAOC also made significant contribution to the development of natural gas resources in Nigeria, both for domestic use and gas for export market.

Last updated on 16/11/18