Kola Karim (Image credit: Africa Oil & Power)
Kola Karim (Image credit: Africa Oil & Power)

Shell, Shoreline 'Partnering' in Lagos Gas Distribution

Shell Petroleum Development Company of Nigeria (SPDC) is to work with Nigerian firm Shoreline Energy to distribute natural gas in Lagos, Nigeria in an investment that cost $300mn. The initiative traces its origins back to October 2015, according to Kola Karim, CEO of Shoreline Energy.

The latter's subsidiary Shoreline Power in 2015 took a 75% stake in Gasland, when it was granted the Lekki gas distribution franchise for the areas around the Lekki (Victoria Island, Epe, and Ikoyi) area of Lagos State by the former Nigerian Gas Company (NGC). Karim also chairs Gasland and Shoreline Natural Resources.

It appears the $300mn was paid to NGC when the project started in 2015. What’s less clear is whether Shoreline Power’s 75% equity interest in Gasland is now to be shared with Shell and, if so, how Shoreland will be remunerated and whether/how the Anglo-Dutch major will supply the venture.

An SPDC spokesman said only: "SPDC is exploring a downstream gas opportunity that will involve partnering with a Nigerian company, Shoreline Energy, for the purposes of buying, marketing, distributing and selling natural gas to companies and consumers on the wholesale and retail basis in the Lekki Franchise area."

No details of supply volumes have been given since news of the Shell-Shoreline cooperation was disclosed to the press on September 11, 2017.

At a time when the recently approved National Gas Policy seems to be improving terms for investors, Shoreline and other firms like Greenville LNG are showing renewed confidence in the sector.

NGC is a downstream gas processing and marketing subsidiary of the state-owned Nigerian National Petroleum Corporation (NNPC). Like Shell, it has marketed gas to the local and export markets. In 2016, NGC was divided into two successor companies; Nigerian Gas Processing and Transmission Company (NGPTC) which is building new pipelines; and Nigerian Gas Marketing Company (NGMC).

 

Omono Okonkwo

 


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