Nigeria's Shoreline Energy signs $300 MM gas deal with Shell
LAGOS (Reuters) — Nigerian energy company Shoreline has signed a $300 MM agreement with the local unit of Shell to develop gas infrastructure around the commercial capital, Lagos, both companies said on Monday.
Shell said in June that it would place more emphasis on gas rather than oil in the West African country, which has the world’s ninth-largest proven gas reserves at 187 Tcf.
Shoreline said the agreement was to develop, buy, market, distribute and sell natural gas in the Victoria Island, Ikoyi, Lekki and Epe districts—areas that contain the city’s business hub and some of the country’s most expensive residential properties.
It said the agreement provided exclusive rights to distribute and sell gas in those areas.
“The partnership is a significant boost to the gas supply efforts of the Federal and Lagos State governments and will deliver tangible benefits to companies and households in Lagos,” said Shoreline’s chairman, Kola Karim.
A spokesman for Shell’s Nigeria subsidiary, the Shell Petroleum Development Company of Nigeria, said the company was “exploring a downstream gas opportunity” in partnership with Shoreline.
Reporting by Alexis Akwagyiram and Libby George in London; Editing by David Goodman
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The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
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