Shell to Supply Gas to Upcoming 255MW Power Plant in South-west

Peter Uzoho

Shell Nigeria Gas Limited, a subsidiary of Shell Plc, has indicated its readiness to supply gas to an upcoming 225 megawatts independent power plant to be sited in an undisclosed Nigeria’s Southwestern state.

Managing Director of SNG, Mr. Ed Ubong, said the company has the capacity to supply all the gas needed for the project being promoted by Coodsynergyn Oil West Africa Limited (CS OWA).

“We have signed the heads of terms agreement with CS OWA as a prelude to a potential Gas Sale and Purchase Agreement,” Ubong said.

He added that the new partnership “will deepen domestic gas utilisation, enhance further industrialisation, and enable local industries to have access to reliable and affordable energy to thrive and create employment opportunities for Nigerians.”

According to the heads of terms agreement, SNG will build the required infrastructure to connect the power plant to the Escravos Lagos Pipeline System for easy access to gas.

General Manager, Shell Energy business line in Nigeria, Markus Hector, said the natural gas-fired power project would bring tremendous benefits to the Nigerian economy by bridging the country’s energy gap as part of the Decade of Gas initiative of the federal government.

Also, Managing Director of CS OWA, Dr Olugbenga Odusanya, said he was excited about the prospect of the new power plant with potential to unlock the domestic gas market and contribute to industrialisation in Nigeria.