Shell readies 624MW electricity for national grid
Jun 26, 2018
Afam VI power plant in Rivers State is ready to deliver its net dependable capacity of 624MW into the Nigerian national grid barring any regulator’s restrictions, even at a time power generation has suffered a deep plunge following reported outage of some thermal power stations.
Managing Director of The Shell Petroleum Development Company of Nigeria Limited (SPDC) and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, told newsmen in Abuja on Tuesday that the SPDC Joint Venture-owned combined cycle power plant is ably maintained to consistently deliver its net dependable capacity of 624MW from an installed capacity of 650MW with its three gas turbines and one steam turbine.
“In 2017 alone, Afam VI supplied approximately 14 per cent of Nigerian’s grid-connected electricity and the plant has delivered over 25.97 Trillion Watt-Hour of electricity into the Nigerian grid in the last 10 years,” Okunbor said. “What is most exciting is that the plant has achieved this milestone while also touching the lives of community people and helping youths to acquire key engineering skills.”
According to Okunbor, the operations at Afam VI have generated subcontract opportunities and employment for over 150 people from the 16 host communities. It also provided hands-on and offshore training for 30 youths in Electrical, Mechanical and Instrumentation engineering on Combined Cycle Power Plant operations and maintenance. All the trainees are employable in the Nigerian power industry.
The power plant also won the Best Company in Climate Action Award in the 2016 edition of Sustainability, Enterprise, Responsibility Awards for Corporate Social Responsibility (SERAs–CSR), an annual event to celebrate organisations that invest resources to improve the socio-economic living conditions of people in Nigeria and Africa.
Afam VI uses combined cycle gas turbine technology that burns 40 percent less gas than plants using older open cycle technologies. This also contributes significantly to the reduction of greenhouse gas emissions.
In November 2017, the Nigeria Electricity Regulatory Commission renewed SPDC JV’s Afam VI power generation licence for another 10 years, and in December 2017, the company signed an interim multi-year agreement with General Electric to improve the power plant’s availability, reliability and output for up to 200,000 Nigerian homes, while decreasing its operational costs.
The agreement covered planned maintenance for the four turbines andupgrade of the gas turbines to help increase the plant capacity by up to 30MW while increasing its efficiency and significantly saving fuel and reducing CO2 emissions.
As a Clean Development Mechanism (CDM) project under the United Nations Executive Board for Climate Change, Afam VI Power Plant targets to eliminate over 500,000 tons of CO2 emissions per year, while also maintaining excellent safety standards.
Located in Afam village in Oyigbo Local Government Area, the plant receives gas from SPDC JV’s gas plant at neighbouring Okoloma village.
Media Relations Manager
Softphone: +234 807 022 8045
Mobile: +234 807 032 8045
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this announcement, joint ventures and associates may also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2017 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, June 26, 2018. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.
We may have used certain terms, such as resources, in this announcement that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.