Shell Petroleum Development Company Limited, SPDC, has concluded plans to develop a new gas project in the Niger Delta.
The Country Chair and Managing Director of SPDC, Mr. Osagie Okunbor, said it was “on the verge of making a final investment decision” on a project in the city of Asa that would have a capacity of 300 million cubic feet.
Okunbor, who declined to specify the cost of the project, explained that Shell was putting more emphasis on gas and reducing the oil portion of its footprint in Nigeria.
Already, the company has invested in some gas projects, including the Nigerian Liquefied Natural Gas Company, NLNG, which harnesses and processes LNG for export.
SPDC disclosed that it was Nigeria’s first LNG project, in which it holds 25.6% share, together with NNPC (49%), Total (15%) and ENI (10.4%).
“The NLNG plant at Bonny Island has six processing units (trains) with total processing capacity of 22 million tonnes a year of LNG and up to 5 million tonnes of natural gas liquids (LPG and condensate). NLNG accounts for approximately 7% of the world’s total LNG supply.”
NLNG supplies power to more than 200,000 residents and businesses on Bonny Island via a rural electrification scheme.
“Shell wants to power progress together by providing more and cleaner energy solutions. Natural gas is the cleanest of fossil fuels and Shell Companies in Nigeria have played a pioneering role in onshore, shallow and deep-water gas exploration and production and its delivery to domestic consumers and later, export markets since the early 1960s.
“Since 2010, the SPDC JV has also been producing at the Gbaran Ubie integrated oil and gas plant in Bayelsa State, which has the capacity to process one billion standard cubic feet of gas per day for the domestic and export markets. Several projects are currently underway at Gbaran Ubie and nearby Kolo Creek and at Soku to develop around 2.8 trillion standard cubic feet of non-associated gas. Natural gas in a reservoir which contains no crude oil is called non-associated gas.
“This additional gas infrastructure will be used to sustain gas supply to the NLNG plant at Bonny and continue to fuel a 225 MW capacity power plant built in Gbaran by the federal government under the Nigeria Integrated Power Project. The SPDC JV also produced more gas in 2016 from the Agbada Early Gas Production Facility, which is expected to further boost gas availability on the eastern Niger Delta domestic gas network and enhance power generation by over 150 MW of electricity. In addition, the SPDC JV operated Okoloma gas plant supplies gas to the Afam VI power plant, which alone contributed approximately 12% of Nigeria’s grid-connected electricity in 2016.”
“Afam VI uses combined cycle gas turbine technology that burns 40% less gas than plants using older open cycle technologies. This also contributes significantly to the reduction of greenhouse gas emissions. Shell Companies in Nigeria remain committed to working with the Federal Government of Nigeria to increase gas supply to the domestic market. For example, the Assa North / Ohaji South project in Imo State, which is a joint development involving SPDC, NNPC and SEPLAT, a leading indigenous producer, has the potential to be one of the largest domestic gas projects in the country, supplying 600 million standard cubic feet per day. This translates into almost 2,400 MW of potential electricity generation when it comes to fruition,” it added.