Shell Nigeria Gas (SNG) and the Oyo State Government have inked a pivotal agreement aimed at establishing a robust gas supply and distribution network catering to industrial and commercial entities within the state.
According to a statement released by Abimbola Essien-Nelson, the Media Relations Manager at Shell Nigeria, SNG will spearhead the construction and operation of this gas distribution infrastructure, slated to serve customers across Oyo State for a period of 20 years.
Initial phases of the project will entail laying down a 15-kilometer pipeline route, with projections to scale up to delivering a substantial 60 million standard cubic feet of gas per day across the state. Anticipated commencement of gas supply is set for the fourth quarter of 2025.
Governor Seyi Makinde, speaking at the signing ceremony, hailed the project as a pivotal catalyst for development in Oyo State, aligning with the state’s agenda to drive innovation and industrialization. Makinde expressed readiness to collaborate with more entities to expedite the execution of impactful projects.
Ralph Gbobo, the Managing Director of SNG, underscored the significance of the agreement, asserting its potential to bolster economic activities in Nigeria by furnishing industries and manufacturers with natural gas, a reliable, cost-effective, and environmentally friendly energy source.
Gbobo emphasized the transformative potential of the gas distribution project in advancing the industrialization agenda of the Oyo State Government, foreseeing augmented internally generated revenue and increased employment opportunities.
Osagie Okunbor, Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman of Shell Companies in Nigeria, emphasized the value of partnership in driving progress, affirming Shell’s commitment to delivering cleaner and more accessible energy solutions for commercial and industrial consumers.
In the same vein , the Federal Government has announced plans to halt the issuance of licenses to gas companies lacking the capacity to develop pipelines for gas distribution.
This move, as disclosed by Minister of State for Petroleum (Gas), Ekperikpe Ekpo, aims to discourage the transportation of compressed natural gas via roadways, underscoring the imperative for transitioning from fossil fuels to compressed natural gas (CNG). Ekpo directed regulatory authorities to withhold licenses from entities unable to facilitate direct piping of CNG to end-users.
