Nigeria's Gbaran-Ubie gas plant uses over $ 1 bn

Nov 18, 2009 01:00 AM

Shell Petroleum Development Company (SPDC) said over $ 1 bn has been spent on the Gbaran-Ubie Integrated Oil and Gas Project, with the provision of employment for 6,000 Nigerians.
The amount, according to the company's management was essentially expended within the country on labour, material and services, through main and sub-contractors, just as over 200 locals have been trained in various skills, including scaffolding, welding, pipefitting, cable pulling among others.

Disclosing this during a media tour of the plant located in Gbaran, Yenagoa local government area, Project Manager of Gbaran-Ubie Integrated Oil and Gas Project, Mr Graham Henley explained that 90 % of its workers are Nigerians, with over 1, 500 from local communities. Henley said SPDC started work on the Project in 2005, saying, commissioning would start next year and would at its peak, produce 1 bn cf of gas each day and more than 70,000 barrels of oil per day.
According to the project Manager, 50 % of the pressure vessels, including its largest were built in Nigeria, with about 250 sub contracts awarded to Nigerian enterprise; even as skilled and unskilled workers were recruited locally in partnership with the Bayelsa state Employment Bureau.

On the importance of the project which he describes as "one of the largest and most important projects in Nigeria, Henley said it will boost power generation as well as sustaining gas supply to NLNG, while contributing to SPDC's on-going work to reduce routine gas flaring in line with government's target," but noted that the company has also built a flare in the event of an emergency.
Mr Henley further explained that the Gbaran-Ubie project will gather 30 mm cfpd gas currently flared at Kolo creek and Etelebu flow stations (both in Bayelsa State), processing it for supply to Nigeria Liquefied Natural Gas (NLNG) and local power stations.

At its completion, he said, "new pipelines will deliver some of the gas to generate power in the Niger Delta. It will supply the BayelsaState power plant at Imiringi and a new 225 MW power plant that government is building at Gbaran".
"The rest of the gas will be transported via SPDC's new Eastern Gas Gathering System (EGGS-2) pipeline to Soku. In the Eastern Niger Delta, from where it will be transported to the NLNG-Shell share 25.6 % at Bonny, for export. The oil it produces will be exported from SPDC's Bonny crude oil terminal," Henley said.

He expressed delight that the project has progressed significantly in the last 18 months without any recorded case of unrest from the locals, pointing out that SPDC has signed four agreements with community groups as part of its Global Memorandum of Understanding (G-MoU) -- covering 44 host communities in the area.

Source / Daily Champion
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