The Oyo State Government and Shell Nigeria Gas (SNG) have signed an agreement to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state. SNG will build and operate the gas distribution network, which will serve customers across Oyo State for 20 years.

Speaking at the signing ceremony, Oyo State Governor Oluwaseyi Makinde described the project as “a catalyst for development in the state.” He said: “This project fits into our plan to drive innovation and industrialization in Oyo State and we’re ready to partner with more companies and other organizations to enhance the delivery of relevant projects.”

Managing Director SNG Ralph Gbobo said the agreement was “a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.”

He explained: “The gas distribution project will be a game-changer in the industrialization drive of the Oyo State Government and help boost internally generated revenue and result in more job opportunities. For SNG the project is a milestone in our effort to continue growing the energy supply to businesses in Nigeria in line with Nigeria’s ambition to drive progress on the back of natural gas availability across Nigeria under the Decade of Gas initiative.”

The project will start with the construction of gas distribution infrastructure along 15km of pipelines route and will grow to deliver up to 60 million standard cubic feet of gas per day across the state. First gas is expected Q4, 2025.

Managing Director of The Shell Petroleum Development Company of Nigeria Ltd and Chairman, Shell Companies in Nigeria, Osagie Okunbor said: “This event points to the value of partnership as Shell continues to power progress in Nigeria through more and cleaner energy solutions for commercial and industrial customers.

 Building on our presence in the country since the 1960s and the wide marketing and trading reach of Shell Energy, we are excited about developing gas distribution solutions and delivering competitive and reliable energy for power generation and industrial use across Nigeria.”

SNG was incorporated in 1998 as a fully Shell-owned company. Over the years, the company has grown as a dependable supplier of gas, and now serves over 150 clients in Abia, Bayelsa, Ogun and Rivers states.

Previously in the same vein, Shell Nigeria Gas (SNG) Limited has also indicated interest in collaborating with the Oil and Gas Free Zones Authority (OGFZA) for the supply of gas. The Managing Director made this intention known when he led his team to a business meeting between a delegation of SNG, Shell Energy Nigeria and Oil and Gas Free Zones Authority (OGFZA) at the authority’s office in Abuja.The delegation made a case for the removal of bottlenecks for accessibility to enable them carry out their enumeration exercise in Onne/Ikpokiri Oil and Gas Free Zone in Rivers State.

Managing Director, Shell Nigeria Gas, Mr. Ralph Gbobo informed the meeting that SNG’s main business is downstream gas distribution to industries in Nigeria with a presence across the nation at Otta, Aba and Port Harcourt and currently penetrating Bayelsa state, stating that there is an ongoing effort to collaborate with the government of Oyo state. He disclosed that SNG currently distributes about 60-70 million scuffs daily. 

The Managing Director and Chief Executive Officer of OGFZA, Bamanga Usman Jada, assured the delegation of the Authority’s readiness for collaboration, stating that OGFZA is responsible for promoting, securing and sustaining investments in the nation’s oil and gas free zones. 

Jada said the authority was committed to remove all bottlenecks that might cause a hindrance to ease of doing business in the zones. He added that the Authority would continue to provide enabling environment for investors operating in the zones. 

He urged them to explore other gas hubs in the Oil and Gas Free Zones such as Liberty Oil and Gas Free Zone in Akwa Ibom State and Orashi Energy City in Imo state which has recently been declared a free zone under the regulation of OGFZA by President Bola Ahmed Tinubu.