Shell PLC, through Shell Nigeria Gas Ltd (SNG), has signed an agreement to supply natural gas to SG Industrial FZE.
The new customer is “a leading steel company in the Guandong industrial zone in the state”, the British company said on its Nigerian website.
“The agreement adds to a growing list of clients for SNG which has developed as a dependable supplier of gas through distribution pipelines of some 150 kilometers [93.21 miles], serving over 150 clients in Abia, Bayelsa, Ogun and Rivers states”, Shell said.
Shell did not disclose the contract volume or value.
SNG managing director Ralph Gbobo said, “Our commitment is clear – to build, operate and maintain a gas distribution system that is not only reliable but resilient, transparent and designed to fuel growth”.
SG Industrial vice general manager Moya Shua said, “This collaboration marks a major step forward in securing reliable energy that will power our growth and long-term ambitions”.
Shell said it had previously signed agreements to supply pipeline gas to Nigeria Distilleries Ltd III, Reliance Chemical Products Limited II, Rumbu Industries Nigeria Ltd and Ultimum Ltd.
Expanding its gas operations in the West African country, Shell recently announced a final investment decision to develop the HI field to supply up to 350 million standard cubic feet of gas a day, equivalent to about 60,000 oil barrels per day, to Nigeria LNG.
The project is part of a joint venture in which Shell owns 40 percent through Shell Nigeria Exploration and Production Co Ltd. Sunlink Energies and Resources Ltd holds 60 percent. At Nigeria LNG, which has a declared capacity of 22 million metric tons of liquefied natural gas a year, Shell owns 25.6 percent.
“The increase in feedstock to NLNG, via the train VII project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of four to five percent per year until 2030”, Shell said in a press release October 14.
HI also supports Shell’s plan announced on Capital Market Day 2025 to start up upstream and integrated gas projects with a total capacity of one million barrels of oil equivalent per day between 2025 and 2030. It also contributes to the company’s target to grow top line production across its upstream and integrated gas business by one percent annually through the end of the decade, Shell said.
HI is estimated to hold about 285 million barrels of oil equivalent, Shell said. The field, discovered 1985, lies 50 kilometers (31.07 miles) from shore in waters 100 meters (328.08 feet) deep, according to the company.
The development consists of a wellhead platform with four wells, a pipeline to transport the gas to Bonny and a gas processing plant on the island, from where the processed gas will be transported to NLNG and the condensate to the Bonny Oil and Gas Export Terminal, Shell said.
“Following recent investment decisions related to the Bonga deepwater development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on deepwater and integrated gas,” said Shell upstream president Peter Costello. “This upstream project will help Shell grow our leading integrated gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market”.
To contact the author, email jov.onsat@rigzone.com
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