Shell to spend $2bn on gas collection in Nigeria

Click to follow

Royal Dutch Shell said yesterday that it is set to spend $2bn upgrading its gas collection facilities in Nigeria's Niger Delta.

The move will allow the energy giant to collect about 75 per cent of the gas it loses to flaring in the region. The gas would then be used by power stations in Nigeria, Africa's biggest energy producer, which suffers from regular power cuts. The project is also being run by Shell's Nigerian joint venture partner, SPDC.

"Security and funding conditions permitting, we have a real chance to progress our flaring reduction plans through these key projects," said Mutiu Sunmonu, SPDC's managing director.

Nigeria burns off more gas than any other country, with the exception of Russia, releasing 2.5bn cubic feet of gas each year.