Nigeria: Shell Moves To Stop Gas Flaring

Gas flaring

Lagos, Nigeria, April 17, 2018// – AngloDutch Oil Company, Shell has again emphasised its commitment to the elimination of routine gas flaring in Nigeria.

The company conveyed this in its annual sustainability report where it said In Nigeria, flaring from Shell Petroleum Development Company’s (SPDC) joint-venture (Shell interest 30%) facilities fell by close to 90% between the start of its gas reduction programme in Nigeria between 2002 and 2017.

It noted that the reduction was mainly due to investing in associated gas gathering and processing facilities that capture the associated gas and commercialise it for either the domestic or export market.

“Divestments also resulted in a further reduction. However, flaring intensity levels from SPDC JV facilities increased in 2017, mainly due to the restart of facilities that were off-line in 2016.

SPDC supports the elimination of routine flaring as quickly as practical. However, to do so requires significant investment in gas-gathering and processing facilities or the stoppage of associated oil production which generates revenue for the Nigerian economy. Several new gas-gathering projects came on stream at the end of 2017, however, the planned start-up dates for two gas-gathering projects have historically been delayed due to a lack of adequate joint-venture funding. Nevertheless, with funding now restored the projects are planned for completion in 2018-19’’.

It added that about 80% of flaring from Shell-operated assets in 2017 occurred in Iraq, Nigeria, Malaysia and Qatar, adding that the company’s flaring increased by slightly less than 10% from 7.6 million tonnes in 2016 to 8.2 million tonnes in 2017.

This was primarily a result of increased production in Nigeria following the return to production of fields previously closed due to security issues. Work continues to bring additional gas gathering facilities online in Nigeria to reach our goal of no routine flaring by 2030.

‘’In Iraq, the Majnoon facilities (Shell interest 45%) captured about 44% of associated gas that otherwise would have been flared in 2017. The gas was exported to a local power plant for electricity generation.

‘’Basrah Gas Company (BGC, Shell interest 44%) is a non-operated joint venture with Iraq’s South Gas Company and Japan’s Mitsubishi. It captures gas that would otherwise be flared from three non-Shell-operated oil fields in southern Iraq (Rumaila, West Qurna 1 and Zubair) for use in the domestic market. In 2017, BGC processed an average of 676 million standard cubic feet of gas each day from these fields to produce electricity.

‘’These projects are helping to improve the power infrastructure of the country and deliver much-needed energy to the population. They involve collaboration with the Iraqi government, joint-venture partners, domestic companies and non-governmental organisations

It added that in Malaysia, associated gas flaring at the Gumusut (Shell interest 29%) and Kikeh fields was eliminated by introducing a system in 2016 that injects gas back into the hydrocarbon reservoir. In 2017, the system worked as expected and production from the oil field was maximised.

In Qatar,  the company’s  Pearl gas-to-liquids plant (Shell interest 100%), flaring takes place for operational reasons,adding that  in 2017, further enhancements to the plant were made to reuse more waste gas.

During the year in view, the company   spent $42.2 billion on goods and services worldwide, of which around 58% was in the USA, Canada, the UK, the Netherlands and Nigeria.

It added that during the period it spent around $4.9 billion in countries that, according to the UNDPHuman Development Index 2016, have a gross domestic product of less than $15,000 a year per person. In these countries, Shell companies spent 80% with local companies.

‘’In 2017, we worked with the Australian government on a development programme to support local suppliers to the Queensland Gas Company (QGC) (Shell-operated, majority interest) coal seam gas project. We provided 12 local suppliers with a dedicated business advisor to help them develop a customised improvement plan to grow and diversify their business. The Australian government matched our funding with AUD$20,000.

‘’At the Prelude floating liquefied natural gas facility, we awarded contracts to Australian waste management company Rusca Environmental Solutions for onshore waste and cleaning services. This is a new business area for the company, which is 100% indigenously owned, and is expected to create further opportunities for indigenous sub-contractors.

‘’In Nigeria, we use locally manufactured goods and service companies which create jobs in the communities in which we operate. In 2017, Shell companies in Nigeria spent around $0.76 billion on contracts for Nigerian companies. Access to financing has been a challenge for suppliers to Shell companies in Nigeria. In collaboration with leading banks in the country, the SPDC Joint Venture (SPDC JV) and the Shell Nigeria Exploration and Production Company Limited continue to fund a mechanism that offers local contractors faster access to loans at cheaper interest rates.

It added that it supported the building of new businesses to generate local employment and its Shell LiveWIRE programme, helps young entrepreneurs turn their ideas into reality.

‘’Shell LiveWIRE entrepreneurs increasingly focus on energy solutions such as affordable and clean energy for low-income communities. For example, Innovate Energy, is a company that offers an external phone battery rental service powered by renewable energy.

‘’Nigeria has one of our most successful Shell LiveWIRE programmes, with a total of $66,200 awarded to 60 young entrepreneurs from Ogoniland, all of whom completed its enterprise development programme. In the Middle East and North Africa, where Shell LiveWIRE is called Intilaaqah, we trained 1,920 participants in 2017 –  52% of whom were women – and helped start up 186 businesses. In Saudi Arabia, Ghazael Aldossary, one of many female Intilaaqah entrepreneurs, has set up two businesses in the chemical and shipping industries with 45 employees.

‘’In the Philippines, we have a community-based enterprise development and biodiversity programme called Turismo at Negosyo Dulot ng Ingat Kalikasan (Tourism and Business Through Protecting Nature). The programme supports sustainable tourism by mobilising community involvement and creating alternative income opportunities, all while protecting and conserving Palawan’s biodiversity. In 2017, the programme provided 67 local jobs and generated more than $90,000 in revenues from supported enterprises.

‘’In Tanzania and Kenya, we are supporting a programme called E4D/Employment and Skills for Eastern Africa with the German, British and Norwegian governments.

This programme aims to improve access to jobs and economic opportunities for local people in natural resource-based industries and related sectors. By the end of 2017, the partnership had raised more than 35 training programmes to industry standards and provided training for around 13,000 people. So far, 73% of the graduates have found employment’’

Independent.ng 

 

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