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.
According to a statement made public on Friday by Abimbola Essien-Nelson, the Media Relations Manager for Shell Nigeria, SNG will construct and run the gas distribution network that will provide 20 years of service to residents of Oyo State.
The project will begin with building gas distribution infrastructure along a 15-kilometer pipeline route, according to the statement, and it will eventually grow to provide up to 60 million standard cubic feet of gas per day throughout the state.
The first gas is anticipated in 2025 during the fourth quarter.
Governor of Oyo State Seyi Makinde spoke at the signing ceremony, describing the project as a spur for the state’s development.
Makinde 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”.
Speaking, the Managing Director of SNG, Ralph Gbobo, noted that 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 industrialisation drive of the Oyo State Government and help boost internally generated revenue and result in more job opportunities.
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“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 event, according to Osagie Okunbor, the Chairman of Shell Companies in Nigeria and Managing Director of The Shell Petroleum Development Company of Nigeria Limited, demonstrated the importance of collaboration as “Shell continues to power progress” in Nigeria by providing 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,” Okunbor added.
In 1998, SNG was established as a wholly owned subsidiary of Shell. With time, the business evolved into a gas supplier, providing services to more than 150 customers in the states of Abia, Bayelsa, Ogun, and Rivers.
The Federal Government declared that it would no longer license gas companies that are unable to construct pipelines for the distribution of gas.
According to the government, this was required to deter the use of roadways for the transportation of compressed natural gas.
This revelation was made by Ekperikpe Ekpo, the Minister of State for Petroleum (Gas), on Wednesday while he was in Abeokuta, the capital of Ogun State.
Ekpo stated that the nation needs to switch from fossil fuel to compressed natural gas (CNG). However, he also disclosed that he had instructed Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Regulatory Authority, to refrain from awarding licenses to individuals who are unable to pipe CNG to the final consumers.
