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SNG provides gas to 90 industrial customers in Ogun, Rivers, Abia states – Report

By Udeme Akpan

Shell Nigeria Gas, SNG,  has provided natural gas to about 90 industrial customers in Ogun, Rivers and Abia states, thus boosting socio-economic development in Nigeria.

Wapco gas facility

The company disclosed in its report obtained by Vanguard that the product is used mainly for power generation, processing and other activities.

It said: ‘’Shell Nigeria Gas Limited (SNG) supplies natural gas to about 90 industrial customers in Ogun, Rivers and Abia states. The gas is used for power generation and processing by industries for the manufacture of domestic products ranging from household consumables, to household utensils and hardware. Among its customers are four compressed natural gas (CNG) companies that make the gas available to other companies outside the SNG pipeline network.

‘’The SPDC JV is the major supplier of gas to Nigeria Liquefied Natural Gas Company Limited (NLNG) (Shell share, 25.6%). The SPDC JV Afam VI power plant, which has a 650 megawatt generating capability, supplied approximately 12% of the nation’s grid-connected electricity in 2016 and since its commissioning in 2008, has delivered 24.16 million Megawatt-hour (MWh) of electricity into the Nigerian grid.

‘’According to the World Bank, in recent years, Nigeria has depended on the oil and gas industry for as much as 90% of export income and 75% of overall government revenue. In 2016, the portion of total government revenue generated from the oil and gas sector was impacted by factors such as the recent decline in oil prices and lower oil production in the Niger-Delta due to acts of vandalism and sabotage.

‘’Shell Companies in Nigeria were one of the initiators and a leading sponsor of the Nigerian Extractive Industries Transparency Initiative, which publishes payments made to the government by extractive industries including international oil companies. The economic contribution from SPDC JV partners to the Nigerian government between 2012–2016 was $29 billion. The Shell share of royalties and corporate taxes paid to the Federal Government of Nigeria in 2016 was approximately $1.4 billion (SPDC $1.0 billion; SNEPCo $0.4 billion).’’ It also disclosed that: ‘’Shell Companies in Nigeria are major contributors to the Nigerian economy, not only through the energy they produce and the revenues they generate for the country, but also via their extensive supply chain, local content and social investment.”

‘’Nigeria is one of the top oil and gas producers in Africa and has the continent’s largest natural gas reserves. Population estimates range from 160 –175 million and the United Nations predicts that Nigeria could have the world’s fourth largest population by 2030. It is therefore an economic and political necessity for Nigeria to make the most of its energy resources. Shell Companies in Nigeria work in partnership with the Federal Government of Nigeria, local and international companies, investors, contractors and communities in meeting this opportunity.

‘’Shell Companies in Nigeria contribute to the Nigerian economy through the energy they produce and revenues they generate for the country.

‘’In 2016, Shell-operated ventures in Nigeria produced an average of 572,000 barrels of oil equivalent per day (boe/d)*, with 369,000 boe/d from the Shell Petroleum Development Company of Nigeria Limited operated Joint Venture (SPDC JV) and 203,000 boe/d from the Shell Nigeria Exploration and Production Company Limited (SNEPCo).’’


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