Lagos, Nigeria. Sept 12th: Shoreline Energy Limited (parent company of Gasland Company Ltd.) and The Shell Petroleum Development Company of Nigeria Limited (SPDC) have signed a $300 million deal that will see the development of infrastructure in and around the Lagos area as well as the development of marketing and distribution operations. The deal is to explore opportunities to buy, market, distribute and sell natural gas to consumers and companies in the Victoria Island, Ikoyi, Lekki, and Epe areas of Lagos. Part of the deal will be to fund a pipeline and transmission network, in which Shoreline Energy holds a 75% stake. This was announced in press release titled “Nigeria’s Shoreline Energy multiplies country’s gas supply efforts to aid local government” signed by Kola Karim, Chairman of Gasland ltd and distributed by APO on behalf of Shoreline Natural Resources.
“The partnership is a significant boost to the gas supply efforts of the Federal and Lagos State governments and will deliver tangible benefits to companies and households in Lagos,” said Kola Karim, Chairman of Gasland and Chief Executive Officer of Shoreline Energy. “The project started in October 2015, when Shoreline Power, a subsidiary of Shoreline Energy took a 75% stake in Gasland, who had been granted the Lekki gas distribution franchise for these areas by the former Nigerian Gas Company (NGC).”
SPDC’s General Manager Gas, Philip Mshelbila said, “We welcome this partnership with Shoreline to build on our companies’ gas supply strength and distribution know-how to deliver gas to customers in the franchise areas. This is an important next step in the expansion of the Nigerian domestic gas market which we have been pioneering since the 1960s.”
The Lekki franchise gives exclusive rights to distribute and sell gas in the Victoria Island, Ikoyi, Lekki, and Epe areas of Lagos.
Shell is set to sign an agreement to develop gas pipeline infrastructure in Nigeria, according to the Financial Times.
The agreement will be in conjunction with Shoreline Energy, a Nigerian partner. The $300 million deal will see the development of infrastructure in and around the Lagos area as well as the development of marketing and distribution operations.
Part of the deal will be to fund a pipeline and transmission network, in which Shoreline Energy holds a 75% stake
Nigeria’s new national Gas Policy calls for a shift towards “market-led” gas pricing. The policy, which was approved in July this year, outlines the government’s aims for gas in the coming years and could pave the way for new legislation. It is designed to reduce Nigeria’s reliance on oil by increasing exploration for and domestic use of gas.