Shell embarks upon $ 45 mm Nigerian gas development project

Dec 20, 2004 01:00 AM

A $ 45 mm gas development project has been embarked upon by Shell Petroleum Development Company in Delta State.
The project, known as Odidi-Forcados Gas Link Pipeline Project, is part of the strategies outlined by SPDC for the eradication of gas flaring in the country by 2008, External Relations Manager (Major Projects) of the Anglo-Dutch oil firm, in the Western Division, Mr Tony Obuaya, said.

Obuaya said SPDC was committed to systematic gas utilisation programme, which involved the collection of flared gas from the existing flow stations across the Niger Delta through gas gathering projects. The programme, according to him, was designed to export associated gas to utilisation points.
Specifically, he said the Odidi-Forcados Gas Pipeline was aimed at providing the conduit for associated gas from Odidi area to Forcados Terminal for export to Nigeria LNG for Trains 4 and 5. He said, "On completion, the project will afford SPDC the flexibility to export Odidi associated gas to NLNG plant in Bonny, thus boosting Nigeria's profile as a major player in the world gas market."

Obuaya said the project which started in the second quarter of 2004 was planned for completion in 2005. He told that an Environment Impact Assessment of the project was carried out and approved by the Federal Ministry of Environment prior to the commencement of construction of the pipeline.
He added, "During execution, various audits, both internal and external, by the Federal Government regulatory agency (Department of Petroleum Resources and Federal Ministry of Environment) are planned, to ensure compliance with quality environmental standards."

He said concerted efforts had been made to positively impact on the host and neighbouring communities by ensuring local content in the execution of the project in line with the company's indigenous contracting policy and sustainable development principles. According to him, key areas of local content utilisation in the execution of the project such as employment, sub-contracting, community development projects and capacity building had been identified.
He added that some 44 skilled and 85 unskilled workers from the local communities were employed in the execution of the project.

He said a minimum of 2.5 % of the contracts sum had been set aside for community development. Already, he said development projects worth N 20 mm had been sited at communities such as Obotobo I and II, Yeye, Kantu, Ofou and Odidi.
He said, "The communities themselves selected the projects through a Participatory Rural Appraisal (PRA) process. The projects range from construction of guest houses, town halls/civic centres to transportation as well as other sustainable income generating projects."

Source: LiquidAfrica
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