New Delhi, Mar 23 (PTI) Nigeria has shortlisted state gas utility GAIL India Ltd to develop the African nation's natural gas reserves.
GAIL featured in the list of 15 companies that Nigeria shortlisted last week for increasing gas production to boost supply to its crippled power sector, industry sources said.
The other shortlisted firms include Shell, Chevron Corp, Exxon Mobil, Russia's state-owned Gazprom, Germany's Eon, UK's Centrica and Norway's Statoil Hydro.
Nigeria is estimated to hold 184 trillion cubic feet of gas reserves, most of which remains unexploited. The shortlisted companies would be invited to build three major gas gathering plants and pipelines that would supply fuel to the power sector.
GAIL is India's flagship natural gas company. It owns and operates 6,700 km of natural-gas high-pressure trunk pipelines and transport almost all of the natural gas in the country. It also is a pioneer in setting up city gas projects for retailing CNG to automobiles and has established presence in Egypt and China.
Sources said the shortlisted firms would be invited to make offers for execution of Nigeria's gas master-plan which calls for investments of over $30 billion in developing reserves and transporting them to users such as those in power sector and also making liquefied natural gas (LNG) for exports.
Nigeria's gas master-plan would involve building a pipeline network and processing facilities, which would be linked to a pipe across the Sahara Desert to supply gas to Europe.
The bulk of the country's gas is exported through the 22- million tonne a year Nigeria LNG plant on Bonny island, or is flared. Nigerian National Petroleum Corp's overall gas plan calls for investments of over $30 billion.
The 15 shortlisted companies were from an initial 48 firms that had expressed interest in investing in Nigeria's gas sector, sources said, adding the African nation wants to put up electricity generation capacity of 15,000 megawatts by 2013.
