M a r k e t N e w s

Nigeria: Shell's Gas Facility to Generate Electricity

Posted on : Friday, 24th October 2014


The managing director of Shell Petroleum Development Company (SPDC) and country chair of Shell Companies in Nigeria, Mutiu Sunmonu, has said that the Otumara Associated Gas Solution Project will generate six megawatts daily.
"Today, we are all witnesses to the completion of the fabrication and integration of Otumara AGS Central Processing Facilities (CPF), the part of the gas plant where a nominal 20 million standard cubic feet (20mmscf) of gas will be compressed and six megawatts (6MW) of electricity generated daily," said Sunmonu, who was represented by general manager Toyin Olagunju at the Modules Completion of Ceremony yesterday
"A few weeks from now, these CPF components made up of the gas compression, gas conditioning/processing and the power generation modules will be transported to the project site for installation on specially constructed pile beam foundations."
Sunmonu described Otumara AGS as a major milestone worth celebrating because of its relevance to Nigeria's local content aspirations.
"This project evidences our commitment to supporting the federal government's effort at reforming the industry," Sunmonu said.
According to Sunmonu, SPDC conceived the AGS as part of plans to cut down the volume of flared gas in Nigeria.
"The Otumara AGS is one of such projects that tie into government's drive to grow Nigeria's domestic gas portfolio for industrialisation (power generation plus other consumption)," added Sunmonu.
He said the Final Investment Decision (FID) for Otumara and Saghara, approved in 2009 underscored "Shell's commitment to minimizing the volume of gas flared in the SPDC joint Venture (JV) operations".
For his part, Project Lead for the Otumara AGS, Shola Omotinugbon, said Daewoo emerged after a competitive tender among three major contractors.
He said the CPF was fully developed and built in Nigeria in line with the Nigerian Content Act of 2010.

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