Shell Petroleum Development Company of Nigeria (SPDC) has signed a a gas supply and aggregation agreement with Geometric Power Aba Limited (GP) and Gas Aggregation Company of Nigeria (GACN),
The agreement, which was signed in Abuja, will enable the partners support the 140 Megawatts Aba Integrated Power Project in Abia State, Nigeria.
According to the agreement, Shell will supply gas from its joint venture gas plant in Imo River traversing Abia and Rivers States to the power producer, Geometric Power Aba Limited via a gas pipeline network which is already installed.
Osagie Okunbor, the Managing Director of SPDC and Country Chair, Shell Companies in Nigeria said the initiative is a demonstration of the oil company’s commitment to supporting Nigeria’s industrialisation through gas.
Okunbor, who was represented by SPDC’s General Manager, Business and Government Relations, Bashir Bello, said that “for more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria’s huge gas resources and it is good to see more players joining the fray to grow the gas market and help improve lives and the earnings in Nigeria”.
Represented by his Special Adviser on Fiscal Strategy, Dr Tim Okon at the agreement signing ceremony, Minister of State for Petroleum Resources, Dr Ibe Kachikwu, described the Aba Independent Power Project as a potential catalyst for opening up the Aba market for economic growth.
Kachikwu also said the government was determined to ensure commercial sustainability of any such project with the potential to grow the gas market.
The Aba IPP, which comprises a 141 MW gas-fired power plant, a 27km gas pipeline, and a distribution utility, within a ring-fenced distribution network, is the first independent and integrated power utility in Nigeria. It is an embedded electricity facility designed to generate and distribute its own electricity.