Shell's partnerships in gas fired power for energy access
Bonny Utility Company, Nigeria: Providing access to reliable and affordable electricity to communities in Bonny Island, Nigeria
The Bonny Utility Company (BUC), a mini utility services company operating on Bonny Island in Nigeria, was established in 2001 to address the energy needs of urban communities living in the vicinity of the Joint Industry Committee’s (JIC) operations. Prior to the BUC, those communities had long faced problems with unreliable power supply and depended heavily on diesel generators, which caused noise and air pollution and fell short of providing an environment conducive to social and economic development. Therefore, the JIC decided to upgrade the electricity distribution system and replace stand-alone diesel generators with gas turbine electricity generated from Nigeria LNG (NLNG) and Shell Petroleum Development Company (SPDC). In addition to the feedstock supplied by SPDC and NLNG to the BUC injection station, the JIC funds the company’s operations, enabling it to provide the local community with subsidized power.
The Joint Industry Committee is composed of SPDC (Shell Petroleum Development Company), Mobil and NLNG (Nigeria LNG is a joint venture of Nigeria National Petroleum Company, Shell (26.5%), Total and Eni). The three companies came together to form the JIC to coordinate their efforts to tackle developmental issues on the Bonny Island.