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SPDC signs multi-million dollar contract to supply more gas for electricity generation

By Samuel Oyadongha, Yenagoa
As part of measures to  boost electricity supply in the country, the Anglo-Dutch oil giant, Shell Petroleum Development Company (SPDC) has signed a multi-million dollar pipeline contract to supply more gas to power stations operating in the country.

The project which is expected to be completed by the end of next year is expected to deliver some 250 million standard cubic feet of gas per day to the domestic gas supply system.

According to a statement issued by SPDC Corporate Media Relations Manager, Tony Okonedo, the contract was signed Tuesday in Port Harcourt with Daewoo Nigeria Ltd.

The contract according to the statement involved 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 spanned 90km the statement added.

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.


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