The Director of New Energy at Seplat Plc, Effiong Okon, has unveiled the company’s plan to construct a new $250m gas plant in Sapele, Delta State.

The announcement took place during the Nigeria Oil and Gas Outlook event in Lagos, themed “Investing in Nigeria’s Energy Future,” where Effiong outlined the company’s vision for contributing to the energy landscape.

Analysts say that there is a heightened interest from investors in the energy sector, anticipating substantial investments to flow into Africa’s largest economy.

This aligns with the global market trend, which increasingly focuses on energy-related ventures, with Africa emerging as a key player in this landscape.

Nigeria holds the largest natural gas reserves on the continent and exports increased significantly in the past 23 years.

During a panel discussion on secured energy transition towards gas, Effiong emphasised Seplat’s commitment, stating, “We are also starting a brand-new plant in Sapele, the Sapele gas plant – another $250 million investment that will deliver a lot of LPGs to the market.”

Providing insights into the company’s timeline, Effiong announced that Seplat’s Joint Venture gas processing facility in Imo State is set to be completed by December, with plans for commissioning in January 2024.

In addressing the broader investment climate, Effiong emphasized the pivotal role of the private sector in driving investments in the oil and gas sector.

He stressed that the government’s support through policies and ensuring a secure environment is crucial for fostering sustainable growth and development in the industry.

According to the Manufacturers Association of Nigeria, energy costs consist of over 30 per cent of businesses in the country.

The increase in petrol prices has further worsened the difficulties faced by struggling MSMEs, who are already burdened by numerous challenges related to their operating conditions.