Shell signs $3.7 billion gas project in Nigeria

Shell signs $3.7 billion gas project in Nigeria

Royal Dutch Shell said it has signed an agreement with Nigeria national oil company and two other groups to develop natural gas projects worth $3.7B.

The gas project is a part of the country’s efforts to deal with a looming domestic fuel shortage.

The seven projects would add 3.4B cf/day of natural gas to the Nigerian market to avoid a shortage that has been forecast for 2020, with gas produced under the projects used to produce a target amount of 15 GW of electricity by that year.

Nigeria is Africa’s top oil producer but has suffered a decline in oil and gas investments – despite the rebound in crude oil prices – due to a lack of government incentives and a delay in the approval of energy industry reform.