• Thursday, March 28, 2024
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Shell, Gredor agreement to spur industrial development of Niger Delta region

Shell, Wike and OML 11 – reaching a compromise

The oil giant, Shell Nigeria Gas (SNG) has commissioned Gredor Nigeria Limited to start the construction of gas pipeline infrastructure that will supply gas to the Industrial Park in Polaku, Bayelsa State. This is to enhance the industrial development of the Niger Delta region.

Spurred by the desire to accelerate industrial development of the Niger Delta region and create jobs and build capacities, Nigeria Content Development and Monitoring Board (NCDMB) planned to set up Industrial Parks in a number of states in the Niger Delta region.

The objective of the industrial parks is to establish them close to the field clusters to stimulate In-country manufacturing by Original Equipment Manufacturers (OEMs) or their local partners, attract

domestic and foreign direct investment at the community level that supports the Oil and Gas Industry, Promote community participation in manufacturing and other industry activities.

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Other objectives include, reduce per capita cost of doing through shared services, develop and integrate the local supply chain to support oil and gas operations, foster mentoring of local SMEs by

international OEMs for annual benefits, facilitate new business start-ups, technology acquisition and competitiveness and Provide a range of made in Nigeria goods for the oil and gas industry.

To ensure the effective take-off of the industrial park, SNG had earlier in the year acquired the lease of one hectare of land in Polaku for the gas project which will supply gas for industries in the park and the environs. The project is expected to be delivered within six months.

Ubong said the Polaku project would boost industrialisation in Bayelsa State and provide employment opportunity for the skilled and unskilled local population in addition to directly improving internally generated revenues in the state. He said, “The project will increase the over 150 industrial and commercial customers in Nigeria who currently receive SNG’S supply of natural gas through gas infrastructure that we have built with our partners and local stakeholders.”

Responding to the rapid expansion of SNG as a distribution network, Country Chair, Shell Companies in Nigeria, Osagie Okunbor said Shell was positioned to continue to optimise its onshore footprint while investing in gas. “For more than 50 years, Shell has been at the forefront of the campaign to develop and monetise Nigeria’s huge gas resources. SNG continues to demonstrate leadership in this space, growing the domestic gas market and also helping to improve lives in every state it operates.”

SNG recently completed 20 kilometres domestic gas pipeline expansion project in Abia State, connecting Agbor Hill, Osisioma and Ariaria industrial zones. The expansion project has enabled the supply of pipeline gas to Ariaria Market Energy Solutions Limited, the Independent Power Project (IPP) consortium that provides electricity to the popular Ariaria market in Abia State. Ariaria International Market is one of the largest leather shoemaking and open stall markets in West Africa, with over 37,000 shops and an estimated one million traders.