Shell targets 2,400MW of electricity from Nigerian gas project

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The Managing Director, Shell Petroleum Development Company of Nigeria Limited and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, has said the ongoing Assa North/Ohaji South gas development project in Imo State will produce 600 million standard cubic feet of gas per day, which is equal to about 2,400 megawatts of electricity.

He said about 2.4 million homes could enjoy uninterrupted electricity from the power to be generated, according to a statement.

Okunbor spoke on Monday at the media launch of the 2019 edition of the ‘Shell in Nigeria Briefing Notes’, an annual publication detailing the activities of the business interests of the global energy giant in Nigeria covering SPDC, Shell Nigeria Exploration and Production Company, Shell Nigeria Gas and the Nigeria Liquefied Natural Gas.

The statement noted that the SPDC took the final investment decision on the Assa North/Ohaji South project last December, giving a major momentum to the domestic gas aspiration of the Federal Government for increased power generation and industrialisation.

Giving a breakdown of the gas production, Okunbor said 300 million scfd would be processed at a new gas processing plant owned by the SPDC Joint Venture while the remaining 300 million would go to a proposed gas processing plant by Seplat Petroleum Development Company Plc.

Okunbor said, “The project would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth as we look to grow the domestic gas market.”

He added that the SPDC and its JV partners – the Nigerian National Petroleum Corporation, Total and Agip – would continue to explore other areas of support for the expansion of domestic gas supply and continue to make investments under the right conditions.

The Assa North/Ohaji South Gas Development Project ranks top among the Federal Government’s Seven Critical Gas Development Projects aimed at accelerating Nigeria’s aspiration for energy sufficiency and diverse industrial growth, according to the statement.

Explaining the company’s gas development strategy, SPDC’s General Manager, External Relations, Igo Weli, said Shell was transforming to a gas-oriented business and “currently accounts for about 10 per cent of Nigeria’s domestic gas, most of which is used for power generation.”

The statement said, “The SPDC and the SNEPCo continue to contribute tremendously to the Nigerian economy. They paid N515.14bn to the Federal Government in 2018 in taxes, royalties and levies while contracts worth N393.94bn were awarded to Nigerian companies in the same year.

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