Shell boosts domestic distribution capacity by 150%
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The Nigeria’s gas production from January 2017 to January 2018 has reached 3.054.33 trillion cubic feet (tcf), representing an average daily production of 7.709.89 billion standard cubic feet per day (bscfd) during the period.
On a monthly basis, a total of 248.78 bcf of natural gas was produced in the month of January 2018, translating to an average daily production of 8.025.01 billion standard cubic feet per day (bscfd).
Besides, Shell Nigeria Gas (SNG) Limited has increased its domestic gas distribution capacity by 150 per cent over the last six months.The increase in capacity, according to Shell, will enable the company to distribute more than 100 million standard cubic feet of gas per day (MMscf/d) to businesses in its western operations.
NNPC said in its monthly Financial Report released recently that out of the 253 billion cubic feet (bcf) of gas supplied in January 2018, a total of 144.19 bcf of gas was commercialized comprising of 34.01 bcf and 110.18 bcf for the domestic and export market respectively.
This, it noted, translates to a total supply of 1,096.99 mmscfd of gas to the domestic market and 3,554.04 mmscfd of gas supplied to the export market for the month. “This implies that 56.93 per cent of the average daily gas produced was commercialized while the balance of 43.07 per cent was re-injected, used as upstream fuel gas or flared. Gas flare rate was 12.51 per cent for the month of January 2018 i.e. 1,021.83 mmscfd compared with average Gas flare rate of 10.18 per cent i.e. 780.15 mmscfd for the period January 2017 to January 2018”, it added.
Speaking on the new feat by Shell in Lagos, SNG Managing Director, Ed Ubong, said that the expansion project shows the commitment of Shell to Nigeria’s industrialisation through the monetisation of Nigeria’s abundant gas resources.
The modules for the second train were fabricated by a Nigerian company which collaborated with its foreign partners to safely execute the project without any Lost Time injuries (LTI’s). Ubong said: “We’re continuing the campaign for gas by discussing with various stakeholders to deepen and expand domestic gas supply to existing industrial and new manufacturing clusters in various locations in Nigeria.”
SNG’s existing gas distribution system in the three states it operates – Ogun, Abia and Rivers – have boosted manufacturing output and helped these states to grow their internally generated revenues and provide local employment opportunities. In 2017, SNG executed a Memorandum of Understanding with the Rivers State Government for the distribution of gas to industries in the Greater Port Harcourt area and its environs. The agreement provides further opportunities for SNG to promote gas as a more reliable, cleaner and cost-effective alternative to liquid fuels in Nigeria.
SNG has built a reputation for safety and credibility and is the only gas distribution company in Nigeria whose facility is ISO 14001 certified. In the course of its business, the company has implemented various development projects in the areas of its operations, donating or renovating schools, providing information communications technology (ICT) centre, equipping science laboratories and launching numerous Road Safety Education and Awareness campaigns in 2016 and 2017.
Source: G Business
