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Nigeria, Shell sign six billion dollars gas project
AFP
LAGOS
Petroleumworld.com 07 26 06
The state-run Nigerian National Petroleum Corporation (NNPC) and Anglo-Dutch oil giant Shell have signed a six billion dollar liquefied natural gas (LNG) project, expected to come on stream in 2011, an official statement said Tuesday.
The signing on Monday in Abuja of a Memorandum of Understanding by the sponsors of the Olokola LNG (OKLNG), the Olokola Free Trade Zone Company and the Nigeria Export Processing Zones Authority "marks a further milestone in the progression of the OKLNG project," said the statement from Shell.
The partners in the project are the NNPC (49.5 percent), Chevron OKLNG Holdings Limited (18.5 percent), Shell Gas et Power Developments B.V. (18.5 percent) and BG International Limited (13.5 percent).
The design of the OKLNG complex is for four LNG trains of 5.5 million tons per year capacity each, with a total production of 22 million tons per year of LNG. The complex will also produce substantial quantities of natural gas liquids as a by-product.
"The execution of the Project Development Agreement for OKLNG is an important milestone in the development of the gas industry in Nigeria, helping to make Nigeria one of the worlds largest LNG exporters," Shell added.
The project is to be implemented in phases, beginning with two liquefied natural gas trains (plants), with a total capacity of 11 million tons per year. Gas supply to the project will be from the upstream operations of affiliates of the sponsors.
All the technical work on the project is scheduled to be completed by the end of this year and commercial export of gas is expected to take place in early 2011.
"We are committed to taking the Olokola LNG project forward. It is a key expression of confidence in Nigeria as a place to do business and in the coming years, we look forward to being just one of many local and international companies operating within the Olokola Free Trade Zone", the managing director of NNPC and chairman of OKLNG, Funsho Kupolokun, said on the occasion.
Ogun and and Ondo states in southwest Nigeria are co-hosting the project.
Studies for the development of the OKLNG project started in April last year and a Project Development Agreement was signed on February 20 after the successful conclusion of these studies.
"This agreement is also an expression of the confidence Chevron, Shell and BG Group has in Nigeria as an attractive location for major oil and gas investment", Shell went on saying.
Officials say that 10,000 jobs will be created as a fallout from this project.
AFP 25 1346 GMT 07 06
Copyright ©2006 AFP. All Rights Reserved.
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