Business
Shell Spends $2bn To Reduce Gas Flaring
The Shell Petroleum Development Company (SPDC), says work has started on 26 flow stations in the Niger Delta, worth two billion dollars to reduce gas flaring.
A statement signed by the SPDC Spokesman, Mr Precious Okolobo, in Lagos on Wednesday, said the projects were those previously delayed by funding or as a result of security problems in the region.
It said the scope of the project included upgrading or replacing existing gas gathering facilities or installing of Associated Gas Gathering (AGG) equipment at flowstations that were not yet covered.
“The gas will then be available for use in power stations and by industries.
“SPDC is also working with interested third parties who require gas for power and for industrial purposes,’’ the statement said.
The Managing Director of SPDC, Mr Mutiu Sunmonu, was quoted as saying that SPDC was pleased to be able to restart work on delayed projects and to begin new ones to further reduce gas flaring in its operations to the lowest practical volume.
He said that if security and funding conditions permitted, there was a real chance to progress the flaring reduction plans through the key projects.
“SPDC has already spent more than three billion dollars on installing AGG infrastructure at 32 flowstations, covering about 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,” Sunmonu said.