Shortly following Shell’s announcement of the world’s first floating LNG project, a key milestone for the company, news has confirmed that the company has shutdown its Afam VI Power Plant due to a shortage of gas arising from the main supply.
To many, Shell is one of the largest multinational companies, but to actually understand its functions and role can be difficult. The duty of the Shell business in Nigeria is to produce gas from land and swamps in the Niger Delta and from deep water reserves. In addition, operating Nigeria’s largest liquefied natural gas plant which exports all over the world. Nigerian National Petroleum Corporation and Agip are its partners in this company. Together they provide far more than the distribution of oil and gas. Shell in Nigeria helps in improving lives in the Niger Delta, generating billions of pounds to support and finance programs across the Delta.
The company has done extremely well after being formed in 1993 to develop Nigeria’s deep water oil and gas resources. It produces oil and gas in water depths up to 2,500 metres, having made some significant discoveries. However, the SPDC has had to shut down Okoloma Gas Plant as it could not continue to produce gas. According to the national grid, it was said that the plant was supplying a capacity of 105MW when it should have been 624MW.
Being such a big organisation brings its difficulties, we’ve known many related stories about oil theft in Nigeria and it is no surprise to hear the shutdown of the Afam VI Power Plant was interrelated to the crude oil theft recently arising from the closure of the Trans Niger Pipeline. When investigations took place, the government agencies and community and civil society representatives revealed an unknown person had installed a six inch crude theft valve on the facility.
Due to this, the company has had to suffer severe payments and fixes to it, with the total daily loss from the TNP shutdown coming down to about 2.4 million.
To avoid any more disruptions the company is doing all it can to restore power generation at the Afam VI plant.
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