A Shell gas station.
Photograph by: JIM YOUNG
Credit: REUTERS

"The Shell Petroleum Development Company (SPDC) operated joint venture produced a total of 512 million standard cubic feet of gas in western Niger Delta on November 18, 2009," the company said in a statement.

"The production level is the highest in two years from the area. The gas goes into the domestic gas network for national power generation and manufacturing industries," it said.

The Anglo-Dutch group said former average gas production from SPDC's western operations was 300 million standard cubic feet of gas per day "The latest achievement consolidates our position as Nigeria's leading gas producer. What is more, this has been done safely,

without harm to people and the environment," SPDC managing director Mutiu Sunmonu said.

The company said the record production came from four gas plants, namely Utorogu, Oben, Sapele and Ughelli East.

"Sapele and Oben had been shut since late last year because of attacks on the pipeline infrastructure. With the repair of the pipelines this year, the two gas plants have since resumed production," it said.

Nigeria's southern oil producing region is returning to stability after years of unrest during which Nigeria, the world's eighth largest exporter of crude, saw its output slashed by a third.

Thousands of rebels seeking a bigger share of revenues for their local communities recently laid down arms in response to a government amnesty.

Shell said it has been producing on average about two thirds of Nigeria's total domestic gas volumes mainly for power generation over the past few years.

Oil- and gas-rich Nigeria currently produces 3,300 megawatts of electricity for a population of 140 million people, compared to South Africa, which generates 15 times more for a population one-third its size.

Nigerian officials often attribute shortage of gas to feed the power plants as the reason for the inadequate electricity supply in the West African country.