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SPDC Joint Venture Signs Muti-Million Dollar Contract to Supply More Gas for Electricity Generation

The Shell Petroleum Development Company (SPDC) of Nigeria Ltd. Joint Venture has signed a multi-million dollar pipeline contract that will enable it supply more gas to power stations in the country. The contract, signed with Daewoo Nigeria Ltd in Port Harcourt on April 27, 2010, will involve the construction of pipelines that will take gas from SPDC’s operated fields at Utorogu, Adibawa and Agbada to the domestic gas network owned and operated by the Nigerian Gas Company. The aggregate length of pipelines covered by the contract scope is 90 kilometres.

Speaking at the signing ceremony, SPDC Managing Director Mutiu Sunmonu said: “This project is of high importance to us as a company and also to the nation. Electricity is key to national development, and we are pleased to increase our capacity to supply more gas to power stations, in addition to other efforts we are making. We are grateful to NNPC and other Joint venture partners for their support in these projects.”

Managing Director of Daewoo Nigeria Ltd, Ki-Pyo Hong, gave an assurance that the project will be implemented “safely and on time”.  On completion of the project by the end of next year, the pipelines are expected to deliver some 250 million standard cubic feet of gas per day to the domestic gas supply system.

SPDC Joint Venture pioneered gas supply to industries in Nigeria in the 1960s, and still supplies over 75 per cent of the domestic gas market, mainly for power generation, and continues to increase its contribution. In 2008, SPDC began producing electricity from the newly-built Afam VI power plant, increasing Nigeria’s electricity capacity by about 15-20 per cent. The plant is powered by gas from SPDC’s Okoloma gas plant which opened in 2008 and has the capacity to increase the nation’s gas supply by approximately 20 per cent.