Oil & Energy
SPDC’s Facility Hits Gas Production Milestone
The largest integrated oil and gas facility at Gbaran-Ubie in the Niger Delta has hit a major milestone in the industry by recording a production template of one billion standard cubic feet of gas per day (bscf/d) ahead of schedule.
Located in the oil-rich western fringe of Yenagoa, the Bayelsa State capital, the Gbaran-Ubie project, initiated by the Shell Petroleum Development Company of Nigeria (SPDC) achieved its first oil and gas in June 2010, with 200million standard cubic feet per day (mmscf/d).
A statement signed by the Shell Corporate Media Relations Manager, Tony Okonedo, quotes SPDC Managing Director, Mutiu Sunmonu as saying that, “the news from Gbaran-Ubie keeps on getting better”.
According to him, “the project is on course to significantly increasing Nigeria’s oil and gas production while at the same time delivering great benefits to the host communities”.
The Tide gathered that work commenced on the Gbaran-Ubie project in 2005, and at its peak, the facility is expected to produce one billion standard cubic feet of gas and up to 70,000 barrels of oil per day.
However, Shell said the facility currently produces about 217,000 barrels of oil equivalent per day.
The largest oil and gas company in Nigeria, indicated that at the peak of construction in 2008, the project created employment for almost 6,000 people, most of them, from the region, and particularly the host communities.
Shell authorities told The Tide that the Gbaran-Ubie facility is one of the largest oil and gas projects in Nigeria, with facilities traversing five oil fields in a stretch of around 650-square kilometer area.
The SPDC management insists that the project will significantly reduce gas flaring from nearby fields, such as Kolo Creek, Zarama and Epie, and would provide natural gas and oil for export, while availing the gas feedstock to enhance electricity generation and supply not only to communities in Bayelsa State, but the entire nation.
To achieve these targets, the facility has been looped to the various oil and gas fields within the circumference, while the Bayelsa State Independent Power Station at Imiringi and the Federal Government’s National Independent Power Project (NIPP) at Gbaran are also being powered by the GUIOGP.
In order to deliver on its corporate social responsibilities as part of its quest to assist in efforts to achieve sustainable development of the area, The Tide learnt that Shell had signed four Global Memorandum of Understanding (GMoUs) with representatives of 44 host communities in a capsule of comprehensive community development programme.
Virtually all the GMoU tasks and targets, The Tide gathered, have been delivered to the beneficiary communities, while individuals and groups have also gained tremendously as a consequence of the project.
These include the provision of electrification, potable water, land transport schemes, town halls, roads, education and health infrastructure development, markets, micro-credit schemes, capacity building and human capital development, scholarship awards, and award of contracts to local contractors, among others.
Nelson Chukwudi
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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