FG, Shell sign gas deal, to deliver 30,000 jobs in two years
The Federal Government has signed a new partnership deal with Shell Nigeria Gas (SNG), on Wednesday, for the lease of one hectare of land in Bayelsa State.
The lease agreement was signed by the Nigerian Content Development and Monitoring Board (NCDMB) on behalf of the Federal Government for the development of a Pressure Reduction and Metering Station by Shell.
The Pressure Reduction and Metering Station will be used to distribute part of the gas from Shell’s Gbarain-Ubie Gas Plant for domestic utilisation.
The land property covering one hectare belongs to the NCDMB which said it has been positioned to be a catalyst for industrialisation of the Nigerian oil and gas industry.
The agreement on the land at Polaku, Bayelsa State was signed in Abuja by the Executive Secretary NCDMB, Engr. Kesiye Simbi Wabote and the Managing Director of Shell Nigeria Gas (SNG), Mr. ED Ubong.
Speaking at the lease agreement signing ceremony, Executive Secretary NCDMB, explained that the Board decided to use part of its land to catalyse the distribution and availability of natural gas to domestic gas to users within Bayelsa and neighbouring states.
He said it fits into the agency’s vision to be a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors, more so that it would create jobs on a sustainable basis and boost economic activities, thereby improving revenue to all levels of governments.
According to him, the availability of natural gas will open up the corridor of opportunities for new and existing investors.
He added that NCDMB is already in receipt of proposals for the location of power plants, CNG plants, and other manufacturing outfits in Polaku.
“With the extension of the gas pipeline network by SNG, more businesses can be supplied with natural gas thereby creating employment and enabling impactful economic activities.
“With this partnership, we expect 30,000 direct and indirect jobs to be created in construction, manufacturing, and services sector within the next two years,” he said.
In January 2020, the Board partnered Rungas Prime Industries Limited in the establishment of a 400,000 per annum Type 3 LPG Composite Cylinder Manufacturing Plant in Polaku, Bayelsa State.
Speaking further, Wabote noted that the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva had declared Year 2020 as the Year of Gas and NCDMB had bought into this declaration.
He stated that the partnership with Shell Nigeria Gas will enable the provision of natural gas for power generation, feedstock, transportation, and for other industrial uses.
He added that SNG’s project aligns with the Board’s 10-year Roadmap which aims to increase the level of Nigerian Content in the oil and gas industry to 70 per cent by 2027.
The Executive Secretary also stated that the Board was delighted to partner with Shell Nigeria Gas (SNG) Limited because the company had been supplying natural gas via pipelines to industrial customers within the Agbara/Ota axis, including the Ogun-Guangdong Free Trade Zone in Ogun State, Aba industrial areas in Abia state, and Port Harcourt in Rivers State with a very impressive safety record.
In his comments, the Managing Director of Shell Nigeria Gas conveyed Shell’s excitement to distribute gas from its Gbarain-Ubie facility to drive economic development in Bayelsa State and environs. He stated that Shell is the pioneer and leader in the delivery of domestic gas.
Chairman of Shell Nigeria Gas Limited, Mr Hans Nijkamp, said the investment will unlock gas delivery and economic development in Bayelsa State.
“Everywhere we have distributed gas, we have seen the explosion of economic activities. That’s Shell’s domestic agenda for gas in Nigeria is very important and we have growth plans and very excited to work together with NCDMB.”