The Shell Petroleum Development Company (SPDC) Joint Venture is developing various gas projects to support domestic consumption, especially by industrial concerns and power generating firms.
Shell, in a document said: “Since 2010, the SPDC JV have been producing at 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 scf of non-associated gas.”
“This additional gas infrastructure will be used to sustain gas supply to the Nigeria Liquefied Natural Gas (NLNG) plant at Bonny and continue to fuel the 225megawatts (Mw) capacity power plant built in Gbaran by the Federal Government under the National Integrated Power Project. The SPDC JV also produced more gas in 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 150Mw of electricity.”
In addition, the SPDC JV operated Okoloma gas plant supplies gas to the Afam VI power plant, which alone contributed approximately 12 per cent of Nigeria’s grid-connected electricity in 2016. Afam VI uses combined cycle gas turbine technology that burns 40 per cent less gas than plants using older open cycle technologies. This also contributes significantly to the reduction of greenhouse gas emission.”
Shell companies in Nigeria, according to the report, remain committed to working with the Federal Government 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, Nigerian National Petroleum Corporation (NNPC) and Seplat Petroleum Development Company, a leading indigenous producer, has the potential to be one of the largest domestic gas projects in the country, supplying 600 million scf per day.
The Bonga deepwater field operated by Shell Nigeria Exploration and Production Company Limited (SNEPCo) also produces gas that is piped from the Bonga floating production, storage and offloading facility to the NLNG plant on Bonny Island, it added. Shell Nigeria Gas Limited (SNG) supplies natural gas as fuel for various industrial processes and power generation in Nigeria. In 2016, SNG distributed an average of 33 million standard cubic feet a day (mmscfd) of natural gas to industries and factories in its areas of operation in Ogun, Abia and Rivers states.