Shell Starts Up Key Nigerian Gas Project
Shell Petroleum Development Company of Nigeria said August 23 it has started production at Gbaran-Ubie Phase 2, a key gas project in Nigeria.
Phase 2 follows the success of the first phase of the Gbaran-Ubie integrated oil and gas development in the Niger Delta, commissioned in June 2010.
Phase 2 peak production of around 175,000 barrels of oil equivalent per day is expected in 2019, said Shell, of which some 864mn ft3/d (8.9bn m3/yr) gas and 26,000 b/d of condensate.
"Today's announcement is a positive step for Shell's global gas portfolio," said Andy Brown, Shell's upstream director: "It is also good news for Nigeria as gas from Gbaran-Ubie Phase 2 will strengthen supply to the domestic market and maintain supply to the export market."
Eighteen wells have been drilled and a new pipe constructed between Kolo Creek and Soku which connects the existing Gbaran-Ubie central processing facility to the Soku non-associated gas plant. First gas flowed from the wells in March 2016, with the facilities coming on stream July 2017.
Shell Petroleum Development Company (SPDC) is the operator of a joint venture between the government-owned Nigerian National Petroleum Corporation (NNPC) with 55%, Shell-owned SPDC 30%, Total 10% and ENI 5%.
Shell took the final investment decision on Gbaran Phase 2 in June 2013; its website said the project will ensure continued gas supply to the Nigeria LNG plant (NLNG) and a power plant at Gbarain, both in the Niger Delta. Elsewhere in Nigeria, Shell says it is moving ahead on four other smaller projects that together will maintain feed gas supplies to NLNG, as well as the Southern Swamp Associated Gas Solutions project which aims to monetise more of the gas produced with oil in the region.
Mark Smedley