Lagos, Nigeria - The Nigerian subsidiary of Anglo-Dutch oil giant Shell has signed a US$101 million contract with Saipem Nigeria to build a gas pipeline from Nigeria's oil-producing Niger Delta to the economic capital city of Lagos. The project, which will see the construction of a 42-kilometre pipeline, will gather associated gas currently being flared in the oil region for industrial and domestic use. 'Some 30 million standard cubic feet per day of gas from Otumara and Saghara fields in Western Niger Delta will be gathered, processed and channelled through the Escravos to Lagos pipeline system ( ELPS),' Shell spokesman Tony Okonedo said in a statement.
The statement quoted Shell Managing Director Mutiu Sunmonu as saying the project is extremely important 'in terms of our commitment to ending gas flaring and consolidating our leadership position in the domestic gas market’’.
Saipem’s Deputy Managing Director in Nigeria, Mr David Rossi, said the company was committed to executing the contract and ensuring delivery of project.
The statement said Shell had already invested US$3 billion between 2002 and 2010, which helped to reduce gas flaring significantly, adding that the firm was investing US$2 billion more in order to complete the project.
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