—FG Queries SPDC Over Gas Supply

The Federal Government yesterday queried Shell Petroleum Development Company (SPDC) on the pace of domestic gas supply for its power projects.

The Minister of Petroleum Resources, Mrs Diezani Allison-Maduekwe, announced this after a closed door meeting of Shell top management with President Goodluck Jonathan at the State House, Abuja.

The minister told State House correspondents after the meeting that the President expressed concern on the multinational company’s integrity on its gas plants, particularly at Itorogu and Ughelli in Delta State.

“Some of our concerns, which we have expressed very concisely to them and to Mr President lie in the area of domestic gas and their integrity on the gas plant, particularly at Itorogu and Ughell. “Domestic gas supply has been slippery over the past few months and that call for a major concern.

We have expressed our very stringent concerns in this regard. We are also concerned at balancing domestic gas output in some respect in the export gas in all output,’’ she said.

The minister said the company, however, assured the government that it would make efforts at increasing the production and supply of gas.

She also said that the recent retreat on power and gas would go a long way in resolving the issue of inadequate supply of gas for power generation.

“We have already held a major gas and power retreat in the last 10 days from which we are expecting some very potent solutions to gas in the western axis.

“We will be looking at the output from that retreat in the next 24 to 36 hours so that we can move forward in a very aggressive manner on gas supply, particularly from the west axis.

“This is a major concern for us and we are taking it very seriously; we are exploring all possible options to ensure that we meet the necessary gas supply,’’ she said.

Commenting on the argument that government had not been taking stringent measures on the activities of multinational oil companies, the minister said the government had always been firm on its decisions.

“We have not taken it lightly at all. I do not think there is any multinational that has not felt the heat that we have placed on them over the last 13 months

“We shall continue to do so; we work as partners but these are critical national assets and they are critical for the development of our economy,’’ she said.

The delegation led by the outgoing Chairman of Shell, Mr Malcolm Rinded, comprised the incoming Chairman of Shell, Mr Andy Brown, and the Managing Director, Mr Mutiu Sunmonu.