Shell signs gas supply agreement to Aba power project

Shell Petroleum Development Company of Nigeria (SPDC) and its joint partners have signed a gas supply and aggregation agreement to support the 140 Megawatts Aba Integrated Power Project in Abia State.

It was signed on Friday in Abuja, by SPDC, Geometric Power Aba Limited (GPAL) and Gas Aggregation Company of Nigeria (GACN).

Under the treaty, SPDC will supply gas from the SPDC joint venture gas plant in Imo River traversing Abia and Rivers States, to the power producer, Geometric Power Aba Limited (GPAL) through a gas pipeline network that is already installed.

Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said:
“This is a further demonstration of our commitment to supporting Nigeria’s industrialisation through gas.”

Okunbor, who was represented by SPDC’s General Manager, Business and Government Relations, Bashir Bello, noted: “For more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria’s huge gas resources.

“It is good to see more players joining the fray to grow the gas market to improve lives and the earnings in Nigeria.”

Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, described the Independent Power Project as a potential catalyst for opening up the Aba market for economic growth.

Represented by his Special Adviser on Fiscal Strategy, Dr. Tim Okon, the minister said the government was determined to ensure commercial sustainability of any such project with the potential to grow the gas market.

Chief Executive Officer of GAPL, Prof. Bath Nnaji, said the project was structured to incentivise gas suppliers to invest in gas production for the domestic market.

“We are confident that the structure will serve as a model for other gas-to-power-projects in Nigeria,” he said.

Managing Director of GACN, Morgan Okwoche, who signed on behalf of his company, described the project as the foremost private off-grid gas supply and aggregation agreement that would enhance industrial growth and economic development.

Those who witnessed the signing included the General Manager, Petroleum Engineering of the Nigeria National Petroleum Corporation, Muazu Awaisu, who represented the Group Managing Director of NNPC; and the General Manager, Gas Portfolio of SPDC, Yemi Famori.

The SPDC JV owns the 650MW Afam VI power plant in Afam, River State that in 2017 supplied 15 per cent of Nigeria’s grid-connected electricity.