Shell Petroleum Development Co. plans to spend $500 million over the next 5 years to expand its Bonny export terminal in Nigeria's Rivers state.
Shell said the expanded terminal could be the world's largest when it comes on stream.
The redesign and expansion of the terminal would double current capacity of 7.2 million bbl. The new terminal is being designed in Canada, and contracts are expected to be signed this year for construction work to begin by 2000. Most of the 23 tanks in the 30-year-old terminal were undergoing routine rehabilitation prior to the expansion proposal.
In addition to capacity expansion, Shell's plans for the terminal include upgrading equipment with computer-controlled monitoring and control systems and replacing the existing gas turbine with a new power plant.
A major focus of the terminal's upgrade would be the conservation of natural gas that is now wasted during the separation of water from the crude oil handled at the terminal. Shell has implemented a policy of conserving all of its Nigerian gas production in order to enhance gas supply to Nigeria's liquefied natural gas export project, in which it is a partner. Partners with Shell in the $3.7 billion LNG export project, slated to start up this October, are Agip SpA and Elf Aquitaine.
Export of crude from the Bonny terminal occurs every 2 days, to allow sufficient time for enough crude to be filtered in the terminal's 23 tanks, a process that takes about 30 hr.
In addition to a 23-km pipeline, the Bonny terminal is linked to the 150,000 b/d refinery at Port Harcourt by a 50-km pipeline that feeds it crude oil for refining, but the latter line currently is not active.
The Bonny terminal receives 400,000-450,000 b/d of crude from a number of flow stations operated by Shell, Elf, and Chevron Corp.
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