Shell Petroleum Development Company (SPDC), in a paper titled, “Shell in Nigeria: Unlocking Nigeria Energy Potential,” has linked crude oil theft to the vandals who broke pipelines to achieve their aim.
The oil giant said 92 per cent of oil spilled from its facilities between 2009 and 2013, was caused by pipeline vandals, and that about 208 kilometres of pipelines were vandalized in 2011; 312 in 2012; and 250 in 2013.
The company said it would single-handedly supply gas to the 225 megawatts (mw) Gbarain power plant, one of the 10 National Independent Power Projects (NIPP) undertaken by the federal government, to generate 5,000Mw of electricity and further improve power supply in the country.
According to the paper, “Shell will be the sole supplier of a new 225 megawatts power plant being built in Gbarain by the federal government under the Nigerian Independent Power Project. In 2010, SPDC began producing from the Gbarain-Ubie integrated oil and gas plant in Bayelsa State. Gbarain is designed to process one billion standard cubic feet of gas per day. In addition to supplying gas to the Nigerian Liquefied Gas (NLNG), Shell also supplies gas to the Bayelsa State power plant at Imiring.”
The paper also indicated that the Gbarain Ubie plant is helping to reduce flaring of associated gas from nearby fields, thereby contributing to the SPDC flares reduction programme.
“The Gbairan Ubie project has created a legacy of skills and capacity in complex gas projects, which will be vital in meeting Nigeria’s electricity supply challenges in the years ahead,” the firm added.
Shell said its Okoloma gas plant supplies gas to the Afam Power Plant, adding that the plant also supplies gas to the domestic market in the East.
“Shell companies in Nigeria remain a crucial part of the overall gas energy mix, with SPDC’s Afam VI power plant alone contributing 14 to 20 per cent of Nigeria’s grid connected electricity generation. Afam is an example of the integration of new technology in domestic power generation. It used 40 per cent less gas than plants using older technology and has the potential to reduce greenhouse gas emissions substantially,” the paper said.
Gas is a major problem, hindering the power plants from performing at optimum capacity.

Johnson Alabi
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