Shell to Generate $50m from Afam VI Power Plant

Shell Petroleum Development Corporation (SPDC) and its joint venture partners are to generate about $50 million from the SPDC’s Afam Vl power plant.
The Afam VI power plant began generating electricity, fed by natural gas from the Okoloma gas plant in October 2008.
The power plant began producing over 400 MW to the national grid, via the open cycle phase and has attained a generation capacity of 624 MW, through the full combined- cycle phase.
The revenue generation figure, according to Shell’s Vice President, Nigeria and Gabon, Mr.
Markus Droll, who spoke at the ongoing Nigeria Oil and Gas (NOG) Conference, in Abuja, was to be realised over a ten-year period.
Gas from Okoloma also serves industrial and other users within the eastern grid network. The Afam VI power plant is an example of the integration of new technology in domestic power generation.
By utilizing combined cycle technology, the plant uses 40 percent less gas than open cycle plants Droll said that Shell had been at the forefront of developing a robust gas market, saying it remained the only international oil company in Nigeria with a dedicated gas distribution company- Shell Nigeria Gas.
The Shell boss maintained that the company remained a crucial part of the overall gas energy mix, with SPDC’s Afam Vl power plant contributing 14-20 percent of the electricity delivered into the national grid.
‘‘It is also noteworthy that the United Nations Executive Board for Climate Change approved and registered Afam as a Clean Development Mechanism Project in 2013.This is the first such project within the Shell Group and the first registered energy efficient power generation project in Nigeria.
We should all be proud of this distinction, which affirms Shell companies ‘commitment to the environment and is also expected to generate $5 million every year to the SPDC JV over the next ten years,’’ he said.