…to deliver 60 millons SCF of gas Daily by Q4 2025

Oredola Adeola

Shell Nigeria Gas (SNG) has signed an agreement with the Oyo State Government to construct and manage gas distribution infrastructure, encompassing 15km of pipeline routes, to service  industrial and commercial users throughout the state for a duration of 20 years.

This was confirmed during the signing ceremony on Friday, hosted by Seyi Makinde, Oyo State governor, witnessed by Shell Nigeria Gas (SNG) led by Osagie Okunbor, Managing Director of the Shell Petroleum Development Company of Nigeria Ltd and Chairman, Shell Companies in Nigeria.

Advisors Reports gathered that the project would 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, with the first gas is expected in first quarter (Q4) 2025.

Oluwaseyi Makinde in his remark 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 said, “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.”

Osagie Okunbor, Managing Director of The Shell Petroleum Development Company of Nigeria Ltd and Chairman, Shell Companies in Nigeria, 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.