Gen. Biz, Gencos, Government, Ministry of Power, NERC

Shell Increases Local Gas Production, Set to Boost Power Generation

Posted: March 29, 2016 at 2:24 pm   /   by   /   comments (0)

The Shell Petroleum Development Company of Nigeria Ltd (SPDC) Joint Venture has started to increase Nigeria’s gas production by “some 10 million standard cubic feet of non-associated gas per day (MMscf/d)”.

According to reliable sources of the company, it has started producing more gas from Agbada field in the Eastern Niger Delta in support of government’s aspiration of increasing domestic gas production for manufacturing and power generation.

“Some 10 million standard cubic feet of non-associated gas per day (MMscf/d) was produced from the Agbada Early Gas Production Facility (EGPF), into the eastern domestic gas network on March 8, 2016 and has already ramped up to 20MMscf/d of gas, with 1,500 barrels per day of oil,” the source said.

The statement, signed by Precious Okolobo, corporate media relations manager, stated that Shell was set to increase power generation in Nigeria through the production of more gas for the local industries.

“A peak production of 40MMscf/d is expected to be achieved, in addition to oil production of about 2,500 barrels per day. The milestone comes as SPDC JV’s Afam VI – with 650MW capacity – continues to deliver power to the national grid.”

In 2015, Nigeria’s natural gas production stood at 1.35 trillion cubic feet (Tcf), ranking the country among the world’s top 30 largest natural gas producers.

Toyin Olagunju, general manager projects at SPDC, said: “We’re pleased to support efforts towards increasing gas supply for manufacturers and power plants”.

“We’re also pleased that the project was delivered in record time – 14 months from initiation to first gas – within budget and most importantly, safely.

“We acknowledge the support of NAPIMS and other JV partners, without which the milestone would not have been possible.”

The additional gas is expected to further boost gas availability on the eastern domestic gas network and enhance power generation by over 150MW.

The early gas project was reported to have been initiated in January 2015 pending the completion of the main Agbada non-associated gas plant.

SPDC says it pioneered the production and delivery of gas to domestic consumers and export markets, signing a gas sale agreement with the Bayelsa state government early this year.

It would sell gas to the Bayelsa Development and Investment Corporation (BDIC) for the purpose of power supply to the Kolo Creek Gas Turbine.

Shell is said to be the only international oil and gas company to have set up a gas distribution business in the country, Shell Nigeria Gas (SNG).

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