Shell Petroleum Development Company Joint Venture (SPDC JV) has reinforced its commitment to work with the Federal Government and the energy companies to up gas supply to the domestic market while reducing flared gas volume.
The oil giant said it is developing new gas projects, which will boost domestic gas supply.
It cited as example, the Assa North/Ohaji South project in Imo State, which is a joint development involving SPDC, the Nigerian National Petroleum Corporation (NNPC), Total, Agip, and Seplat Plc, a leading indigenous producer, to have the potential to be one of the largest domestic gas projects in the country.
SPDC is expected to supply 600 million standard cubic feet per day (mmscfd) of gas to two plants – a new SPDC JV processing plant and a new proposed Seplat processing plant. The combined volume translates to almost 2,400megawatts (mw) of potential electricity generation when it comes into fruition.
SPDC said it continues to make progress in close collaboration with its JV partners and the Federal Government towards the objective of ending continuous flaring of associated gas. Associated gas is found in association with oil within a reservoir.
According to Shell, since 2000, all new SPDC JV facilities have been designated to eliminate continuous flaring of associated gas. In parallel, a multi-year programme has been successfully implemented to install equipment for capturing associated gas from older facilities.
“Since late 2016, the SPDC has been working with third parties to develop small scale projects to capture the associated gas from these remaining sites for domestic utilisation.The SPDC JV is currently in discussion with Federal Government to launch the Nigeria Flared Gas CommercialisationProgamme, which is expected to address these remaining sites,” the company said.
