Oyo partners Shell Nigeria Gas to build gas distribution network

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, ‘Seyi Makinde, described the project as “a catalyst for development in the state.”

He said: “This project fits into our plan to drive innovation and industrialisation in Oyo State and we’re ready to partner with more companies and other organisations 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.”