NCDMB, Shell seal pact on gas facility development

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NCDMB, Shell seal pact on gas facility development
March 9, 2020
 
in Business

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The Nigerian Content Development and Monitoring Board (NCDMB) and Shell Nigeria Gas (SNG) have signed an agreement on development of a Pressure Reduction and Metering Station.

NCDMB will lease one hectare of its land at Polaku, Bayelsa State, to SNG, which will develop the pressure reduction and metering station.

The deal was signed in Abuja by the Executive Secretary NCDMB, Kesiye Simbi Wabote and the Managing Director of Shell Nigeria Gas (SNG), Mr. E. D. Ubong.

The pressure reduction and metering station will be used to distribute part of the gas from Shell’s Gbarain-Ubie Gas Plant for domestic utilisation.

In his remarks about the lease, Wabote stated that the Board decided to use part of its land to catalyse the distribution and availability of natural gas to domestic gas users within Bayelsa State and neighboring states, in line with the Board’s vision to be a catalyst for the industrialisation of the oil and gas industry and its linkage sectors.

According to him, the availability of natural gas will open up the corridor of opportunities for new and existing investors. He added that NCDMB is already in receipt of proposals for the location of power plants, compressed natural gas (CNG) plants, and other manufacturing outfits in Polaku.

“With the extension of the gas pipeline network by SNG, more businesses can be supplied with natural gas, thereby, creating employment and enabling impactful economic activities.

With this partnership, we expect 30,000 direct and indirect jobs to be created in construction, manufacturing, and services sector within the next two years,” he said.

In January, the Board partnered Rungas Prime Industries Limited in the establishment of a 400,000 per year Type 3 LPG Composite Cylinder Manufacturing Plant in Polaku, Bayelsa State.

 

Wabote further noted that the Minister of State for Petroleum Resources, Chief Timipre Sylva, had declared 2020 as the Year of Gas and NCDMB had bought into this declaration.

He stated that the partnership with Shell Nigeria Gas will enable the provision of natural gas for power generation, feed stock, transportation, and for other industrial uses.

He said SNG’s project aligns with the Board’s 10-year Roadmap, which aims to increase the level of Nigerian Content in the oil and gas industry to 70 per cent by 2027.

The NCDMB chief also stated that the Board was delighted to partner with Shell Nigeria Gas (SNG) Limited because the company had been supplying natural gas via pipelines to industrial customers within the Agbara/Ota axis, including the Ogun-Guangdong Free Trade Zone in Ogun State, Aba industrial areas in Abia State, and Port Harcourt in Rivers State with a very impressive safety record.

The SNG chief said Shell is excited to distribute gas from its Gbarain-Ubie facility to drive economic development in Bayelsa State and environs. He stated that Shell is the pioneer and leader in the delivery of domestic gas.

Chairman of Shell Nigeria Gas Limited, Mr. Hans Nijkamp, said the investment will unlock gas delivery and economic development in Bayelsa State.

“Everywhere we have distributed gas, we have seen the explosion of economic activities. That’s Shell’s domestic agenda for gas in Nigeria, it is very important and we have growth plans and very happy to work together with NCDMB,” he added.