Following final investments decisions on two projects earlier this year, Shell announced on Monday that it is targeting a 600 million cubic feet (MMcf) of gas output from its Assa North and Ohaji South assets in southeast Nigeria.
Currently, under development, the two fields in the hydrocarbon-rich Imo state will generate energy equivalent to 2,400 megawatts (MW).
Osagie Okunbor, Managing Director at Shell Petroleum Development Co., stated that “the projects would be a major game-changer in Nigeria’s quest for energy sufficiency and economic growth as we look to grow the domestic gas market.”
This production will see 2,4 million Nigerian homes with an uninterrupted power supply, the company said.
Shell, along with its project partners, the Nigerian National Petroleum Corp. and local producer Seplat Petroleum, is “transforming to a gas-oriented business and currently accounts for about 10 percent of Nigeria’s domestic gas, most of which is used for power generation,” Okunbor explained.
Nigeria currently produces 1,5 billion cubic feet per day (Bcf/d) and hopes to raise its production capacity to 7 Bcf/d. In achieving this goal, large amounts of gas are being burnt along with crude, mainly in the Niger Delta region onshore.
The lack of infrastructure to use the gas for better means has created friction in the region between communities and oil companies, translating into health issues and ongoing tension.