Shoreline Energy has signed a $300 million deal with Shell Petroleum Development Company (SPDC) to build a pipeline that will supply gas to industries and households within selected areas in Lagos.The areas include Victoria Island, Ikoyi and Epe.
Kola Karim, Chairman of the Shoreline group, and a representative of Shell both confirmed the partnership.
Why the deal is key
Lagos is the commercial nerve centre of the country, with a large proportion of industries located within its boundaries. Epileptic power supply, has left many businesses and individuals having to generate their own power. Constructing a pipeline means individuals will be able to generate their own power and not have to rely on the national grid. Increase power means industries will witness less downtime, and have cost reductions compared to running alternative sources of energy.
Nigeria has been unable to maximally distribute power generated in the country, due to limitations in the capacity of the transmission grid. Militant attacks on gas pipelines have often led to disruptions in power supply.
Shoreline Energy International was founded in 1997 and has operations in several sectors including engineering, energy and telecommunications across several countries including Uganda, Ghana and Sierra Leone. The company has controlling stakes in Costain West Africa and Nigerian Ropes. Shell Petroleum Development Company (SPDC) is one of the largest oil companies in Nigeria and produced the country’s first commercial exports in 1958. Shell is the only international oil and gas company to set up a gas distribution company in Nigeria to supply industrial customers.