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Shell earmarks $2b for gas flaring reduction

The Shell Petroleum Development Company of Nigeria (SPDC) said it would spend more than $2 billion (about N300 billion) to carry out projects that will reduce gas flaring. Mr Tony Okonedo, Shell’s Corporate Media Relations Manager, said in a statement in Port Harcourt  that the projects would cover 26 flow stations in the Niger Delta region.

“The projects, which will cost more than $2 billion, covers 26 flow stations in the Niger Delta. Many of the projects have been delayed by funding or security problems where work has now started,’’ he said.

Okonedo said the scope of work to be done included the upgrading or replacing gas gathering facilities or installing associated gas gathering facilities at flow stations that had not yet covered.

“The gas will then be available for use in power stations and by  industries. Shell is also working with interested third parties who require gas for power and industrial purposes,’’ he said. The media manager quoted the Managing Director of Shell, Nigeria, Mr Mutiu Sunmonu, as saying that the company was pleased to commence work on gas flaring reduction projects.

“Security and funding conditions permitting, we have a real chance to progress our flaring reduction plans through these key projects,’’ Sunmonu was quoted as saying. The Managing Director also said that the company had spent more than $3 billion (about N450 billion) to install associated gas gathering infrastructure at 32 flow stations, which covers half of its production potential.

“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,” the Shell boss said.


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