11 Sep Shell signs $300m deal with Shoreline Energy to develop Nigerian gas infrastructure
Royal Dutch Shell’s Nigerian division has inked a US$300 million deal with Shoreline Energy to grow natural gas opportunities in Lagos.
The Shell Petroleum Development Company Nigeria (SPDC) will develop gas pipeline infrastructure around Nigeria’s commercial capital in a deal which highlights the move from large energy companies to service demand for gas in growing African economies, reports the Financial Times.
The agreement is one of a string of global energy conglomerates investing in gas related infrastructure on the continent in a bid to push gas as the best solution for a deepening shortage of electricity-generating capacity.
Shell will aid Shoreline Energy in financing and constructing a transmission and distribution network for a gas concession Shoreline purchased 75% of from Gasland Company in 2015.
SPDC Nigeria general manager for gas Phillip Mshelbila said the partnership represents ‘an important next step in the expansion of the Nigerian domestic gas market’.