Shoreline Energy signs US$300 million gas deal with Shell
Hey guys, just read some good news regarding gas production in Nigeria. The news read that a Nigerian energy company, Shoreline, has signed a US$ 300 million agreement with the local unit of shell to develop gas infrastructures around Lagos state, the commercial capital of Nigeria.
This is a welcomed development as the demand for gas in Nigeria currently outstrips available supply. This serves as a major challenge for various ongoing gas to power projects. Before the release of the news, Shell promised in June 2017 to focus on gas rather than oil in Nigeria, a country which has the world’s ninth largest proven reserves at 187 trillion cubic feet. Apparently, Shell is taking great steps in fulfilling their promise by investing in gas production in Nigeria.
The agreement is to grant Shoreline the exclusive right to distribute and sell gas in some high value areas in Lagos and its environs. Such areas include Victoria Island, Ikoyi, Lekki and Epe districts. From what we gathered, Shoreline energy is to operate using their subsidiary, Gasland Company Limited, which has a 20 year concession to distribute gas from Lekki, ikoyi, Victoria Island axis of Lagos. Their main objective within the next few years would be to provide gas access for everybody within the zones.
The Federal government and NNPC have been working closely with Gasland in negotiating the right contracts to ensure that the delivery is achieved. Again, Shell funding the operation and partnering with Gas land is a great plus considering their technical expertise in executing similar projects globally.
My hope is that the project is executed successfully and gas supply starts increasing as this would help deliver tangible benefits to companies and households in Lagos, and also support the Light up Lagos project.