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SPDC Announces Gas Flaring Reduction Projects

The Shell Petroleum Development Company of Nigeria (SPDC) operated Joint Venture is now working on a series of projects that will lead to more than three quarters of its production potential being covered by associated gas gathering (AGG) facilities. The projects, which will cost more than $2 billion, cover 26 flowstations in the Niger Delta. Many are projects previously delayed by funding or security problems where work has now restarted.

The scope includes upgrading or replacing existing gas gathering facilities, or installing AGG equipment at flowstations that are not yet covered. The gas will then be available for use in power stations and by industry. SPDC is also working with interested third parties who require gas for power and industrial purposes.

The Managing Director of SPDC, Mutiu Sunmonu, said: “SPDC is pleased to be able to restart work on delayed projects and begin new ones to further reduce gas flaring in our operations to the lowest practical volume. Security and funding conditions permitting, we have a real chance to progress our flaring reduction plans through these key projects.”

SPDC has already spent more than $3 billion on installing associated gas gathering infrastructure at 32 flowstations, covering about half of its production potential. Mr. Sunmonu added: “It is important to emphasise that, as elsewhere in the industry around the world, even when we have associated gas gathering facilities, a small amount of gas flaring at production sites will always be required for technical, safety and maintenance reasons.”