Nigeria: Shell Increases Gas Production in Eastern Niger Delta

Posted on :Wednesday , 30th March 2016

Shell Petroleum Development Company of Nigeria Limited (SPDC) Joint Venture has announced that more gas is being produced from Agbada field in the Eastern Niger Delta in support of federal government's aspiration of increasing domestic gas production for manufacturing and power generation.

This development is coming at a time Nigeria's power supply has dropped significantly due to gas shortages to power stations

Power generation, which hit 5,074 megawatts on February 2, dropped to about 3,700MW yesterday due to gas shortages and transmission challenges.

But Shell's Corporate Media Relations Manager, Mr. Precious Okolobo, said in a statement last night that some 10 million standard cubic feet of non-associated gas per day (MMscf/d), which was produced from the Agbada Early Gas Production Facility (EGPF), into the eastern domestic gas network on March 8, 2016, had already ramped up to 20MMscf/d of gas, with 1,500 barrels per day of oil.

Okolobo explained that a peak production of 40MMscf/d is expected to be achieved, in addition to oil production of about 2,500 barrels per day.

According to him, the milestone comes as SPDC JV's Afam VI - with 650 megawatt- capacity - continues to deliver power to the national grid.

General Manager Projects, SPDC, Toyin Olagunju said the company was pleased to support efforts towards increasing gas supply for manufacturers and power plants.

"We are 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," Olagunju said.

The additional gas will further boost gas availability on the eastern domestic gas network and will be available to enhance power generation by over 150MW. The early gas project was initiated in January 2015 pending the completion of the main Agbada non-associated gas plant.

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 (BDIC) 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, Shell Nigeria Gas (SNG).

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