Shell invests in 4 projects to meet Nigeria’s domestic gas demand

Posted by News Express | 1 March 2021 | 311 times

Gmail icon

•SPDC MD and Chairman of Shell Companies in Nigeria, Osagie Okunbor

 

The Shell Petroleum Development Company (SPDC) says it has positioned itself to meet the domestic gas demand projected to hit five billion standard cubit daily by 2022 by developing for gas fields.

The energy firm also reiterated its support to the Federal Government’s goal of using the country’s proven gas reserves to drive economic activities for gas-based industrialization.

A statement issued by Mr. Bamidele Odugbesan, Media Relations Manager, quoted Mr. Osagie Okunbor, SPDC’s Managing Director as saying that the company remains optimistic in developing the gas potentials of Nigeria.

Okunbor who is also Country Chairman of Shell Companies in Nigeria, said Shell’s support is shown in the company’s multi-billion dollars investment in four of Nigerian National Petroleum Corporation’s (NNPC) ‘Seven Critical Gas Development Projects.’

According to the statement, Okunbor spoke at the Nigerian Gas Association’s 12th International Conference and Awards, held virtually on February 25, 2021.

The theme was, “Powering Forward: Enabling Nigeria’s Industrialization via Gas”.

Okunbor said: “Shell has invested in the Assa North Gas Project; Four Unitised Gas Fields; Brass Fertilizer Company; and the Cluster Development of Okpokunou/Tuomo West (OML 35/62) to support the government’s drive for national development.

“I am very happy that NNPC and the Nigerian Content Development and Monitoring Board have taken key roles in these projects. These are positive steps.”

He commended the government’s recent progress in gas development and stated support for NNPC’s aspiration to grow domestic gas usage in Nigeria to five billion cubic feet of gas per day from its current 1.7 billion cubic feet of gas per day by 2022.

“Nigeria has launched out on a few audacious and, frankly, great projects to essentially drive our ambition as a country in this regard.

“Let’s find a way to make sure that we stay the course and begin to put our efforts in a consistent manner towards downstream where our country can get ultimate benefit for gas.” Okunbor said.

He also called for robust engagement in discussions for an agreeable price framework in order to attract investments in the country’s rich gas sector.

According to him, a robust pricing framework would be very helpful to unlock Nigeria’s proven gas reserves, especially for power, agriculture and industrial sectors.

Okunbor said the current pricing regime does not quite fit the wider framework of what the gas industry does.

“We want to incentivize methanol and fertilizer production, which is extremely important, to gear up our agricultural sector but the price regime now in that sector is lower than the kind of prices that you have for supply to the Power sector and industrial establishments.

“To make domestic gas work, we do need a right price regime. It might just mean that some sectors are supported more than others that can naturally carry themselves.

“The Petroleum Industry Bill provides that framework,” Okunbor said.

He urged policymakers to strike a balance between trying revenue in terms of the kind of taxes and royalties that are put on gas and understanding that this is actually much more of a resource that drives national development.

“Gas is by far more important as a catalyst for development, he said.”

He noted that with over 200 trillion cubic feet of gas proven, the world’s 9th largest proven gas reserves, Nigeria can satisfy both domestic and export markets.

He said that the nation’s full potentials in gas is attainable if the right policies and processes are put in place and the country continues to drive those policies, processes and gas infrastructure.


Source: News Express

Readers Comments

0 comment(s)

No comments yet. Be the first to post comment.


You may also like...