By Yemie Adeoye
IN an effort to bring about a drastic reduction of gas flare in the country, Shell Petroleum Development Company, SPDC, of Nigeria Limited has signed a contract with Saipem Contracting Nigeria Limited for a pipeline system that will gather associated gas currently being flared for use in the domestic gas market.

Some 30 million standard cubic feet of gas per day (MMscf/d) from Otumara and Saghara fields in Western Niger Delta will be gathered, processed and channelled through the Escravos-Lagos Pipeline System (ELPS) in a project that costs $101 million.

Speaking on the development during the signing ceremony in Port Harcourt, Managing Director of SPDC, Mr. Mutiu Sunmonu, said: “This is an extremely important project for SPDC in terms of our commitment to end routine gas flaring, and consolidate our leadership position in the domestic gas market, security and funding permitting. We will continue to make good progress in bringing on the projects that will reduce flares and boost gas supplies to the domestic market.”

Deputy Managing Director Saipem Contracting Nigeria Limited, Davide Rossi, said: “We are committed to executing the contract job and ensure timely delivery of the project.” The 42-km pipeline is of various sizes ranging from 2″ to 12″ passing through a swampy terrain with a major river crossing.