Shell signs agreement to build gas pipelines in Oyo

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Shell Nigeria Gas (SNG) and the Oyo State Government have entered into an agreement aimed at developing a robust gas supply and distribution infrastructure to cater to the needs of industrial and commercial users in the state.

As disclosed in a statement released by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, the agreement outlines plans for SNG to construct and operate a gas distribution network across Oyo State for a period of 20 years. This network will facilitate the delivery of gas to various customers throughout the state.

The project will commence with the construction of gas distribution infrastructure spanning a 15-kilometre pipeline route, with provisions for expansion to accommodate the delivery of up to 60 million standard cubic feet of gas per day across Oyo State.

At the signing ceremony, Oyo State Governor Seyi Makinde hailed the project as a pivotal catalyst for development, aligning with the state’s strategic goals of fostering innovation and industrialization.

Governor Makinde expressed his readiness to collaborate with additional companies and organisations to facilitate the execution of vital projects that will enhance socio-economic progress in Oyo State.

In his remarks, the Managing Director of SNG, Ralph Gbobo, emphasised the agreement’s significance in bolstering economic activities within 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, 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 a 15-kilometre pipeline route and will grow to deliver up to 60 million standard cubic feet of gas per day across the state. The first gas is expected in 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.

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