Shell, partners sign FID for Assa North gas 300mcf/d
The Shell Petroleum Development Company of Nigeria Limited (SPDC) and its joint venture partners, yesterday, signed a Final Investment Decision (FID) agreement for the 300 million cubic feet of gas per day Assa North Gas Development Project.
SPDC had in December 2018 announced its plan to decide on the Assa North Gas Development Project which is one of the seven critical gas development projects of the Federal Government.
The project, located in south-eastern Imo State, aims to position Nigeria as a regional hub for gas-based industries while complementing the Federal Government’s aspiration for gas sufficiency for domestic consumption, power generation, and gas-based ammonia and urea fertilizers for farmers.
The signing agreement was held in Abuja.
SPDC, in a statement, said at peak production, the project is expected to produce 300 million standard cubic feet of gas per day and will be treated at SPDC JV’s Gas Processing Facility and distributed through the ObiafuObrikom-Oben pipeline network.
Speaking at the FID agreementsigning ceremony, the Group Managing Director of Nigeria National Petroleum Corporation (NNPC), Dr. Maikanti Baru, described the project as a major investment towards fulfilling the domestic gas aspiration of the Federal Government, adding that the corporation was excited at the progress with the project and would provide the needed support to ensure first gas production as soon as possible.
Baru, who was represented by NNPC Chief Operating Officer Upstream, Malam Rabiu Bello, said, “The NNPC project management board would work hard to ensure progress having provided the necessary approvals and enablers,” adding that on successful completion, the project would translate into huge social-economic benefit to Nigerians.
Also speaking, the Managing Director of SPDC and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, described the progress with the FID as good news for SPDC JV and Nigeria for the accelerated growth of the domestic market and optimisation of SPDC’s onshore footprints.
Okunbor said, “The project is key to driving the Federal Government of Nigeria’s ambition of marching away from a mono-economy through diverse industrial growth. It is premier amongst the Seven Critical Gas Projects initiative led by the Ministry of Petroleum and the Nigerian National Petroleum Corporation (NNPC). Their integrated focus, support and drive were instrumental to this investment decision.’’