The Shell Petroleum Development Company of Nigeria Ltd has concluded plans to invest $3.9bn on the Trans Niger Pipeline loop-line and the Gbaran-Ubie Phase Two projects.
The operator of the Nigerian National Petroleum Corporation /SPDC joint venture, said on Friday that it had taken final investment decisions on the two projects.
The total capital investment for the two bundles of projects, according to SPDC, is around $3.9bn.
SPDC Managing Director, Mr. Mutiu Sunmonu said, “Today’s announcements demonstrate our long term commitment to Nigeria by clearly signaling our intent for the strategic direction of Shell in Nigeria.”
Sunmonu further said, “These investments will help to secure energy supplies for domestic and international markets. The TNPL project demonstrates the tangible steps SPDC and its partners are taking to tackle the scourge of criminal activity – pipeline sabotage and crude theft in the Niger Delta, which is the cause of so much environmental and economic damage in this region.”
The TNP, according to him, is important for Nigeria, pumping some 180,000 barrels per day of crude oil to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI power plant) and liquefied gas exports.
He said sections of the TNP had been heavily impacted by sabotage and crude oil theft, adding that total capital investment for the TNPL project bundle was expected to be $1.5bn.
“The design of the TNPL includes improvements which make the pipeline better protected against crude oil theft and sabotage, which should help to reduce pollution related to criminal activity which was a key aspect of a 2011 United Nations Environment Programme (UNEP) report on Ogoniland,” Sunmonu said.