Shell increases gas production to boost power generation

*Shell operated Kolo Creek gas plant.

*Shell operated Kolo Creek gas plant.

Oscarline Onwuemenyi

29 March 2016, Sweetcrude, Abuja – The Shell Petroleum Development Company of Nigeria Limited Joint Venture on Monday announced an increase in its gas production from the Agbada field in the eastern Niger Delta.

The company, in a statement signed by its Corporate Media Relations Manager, Precious Okolobo, said the increased production was in support of the Federal Government’s aspiration of raising domestic gas production for manufacturing and power generation.

The SPDC said some 10 million standard cubic feet of non-associated gas per day was produced from the Agbada Early Gas Production Facility into the eastern domestic gas network on March 8, 2016, and had already ramped up to 20MMscf/d of gas, with 1,500 barrels per day of oil.

The company explained that the additional gas would further boost the availability of the product on the eastern domestic gas network and would be available to enhance power generation by over 150MW.

According to the statement, a peak production of 40MMscf/d is expected to be achieved in addition to oil production of about 2,500 b/d. The milestone comes as SPDC JV’s Afam VI, with 650 megawatts capacity, continues to deliver power to the national grid.

The General Manager Projects, SPDC, Toyin Olagunju, was quoted to have 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.”

It said the early gas project was initiated in January 2015 pending the completion of the main Agbada non-associated gas plant.

According to the statement, SPDC pioneered the production and delivery of gas to domestic consumers and export markets. Early this year, SPDC signed a gas sale agreement with the Bayelsa State Government under which it will sell gas to the Bayelsa Development and Investment Corporation for the purpose of power supply to the Kolo Creek Gas Turbine.

Shell is the only international oil and gas company to have set up a gas distribution business in the country through the Shell Nigeria Gas, the statement said.

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