Shell’s Trickle Production at Agbada Is Symbolic of Nigeria’s Gas Challenges - Africa’s premier report on the oil, gas and energy landscape.

Shell’s Trickle Production at Agbada Is Symbolic of Nigeria’s Gas Challenges

Shell Nigeria gleefully reported in the last fortnight, that it had ramped up to 20MMscf/d of gas, in the Agbada Early Gas Production Facility (EGPF), into its eastern domestic gas network.

This is a figure that is about a quarter of the plant’s installed capacity. The widely distributed press release about the ‘achievement’ is symbolic of the crying inadequacy of natural gas supply into the Nigerian electricity system, where over 4,000MW of power generation capacity is idled by lack of natural gas to supply them. At the moment, there are very few projects under construction that are aimed at boosting gas supply into the electricity system in a short amount of time.

They include the NPDC operated 150MMscf/d Utorogu NAG 2, which was expected to have been commissioned by August 2015 and the Seplat-operated increase of its Oben Processing Plant capacity from 300MMscf/d to 525MMscf/d. The country’s publicly generated power, which hit 5,074 megawatts on February 2, 2016, has dropped by 50% in the last two weeks due to gas shortages and transmission challenges.

The electricity industry is getting less than 70% of the 1Billion standard cubic feet per day it clearly needs to produce just 4,000MW of gasfired electricity. Still, Shell’s Corporate Media Relations Manager, Mr. Precious Okolobo, excited about his company’s Agbada achievement, explained that a peak production of 40MMscf/d is expected to be achieved, sometime soon, in addition to oil production of about 2,500 barrels per day.

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