A groundbreaking deal has been reached between Shell Nigeria Gas (SNG) and the Oyo State Government to build a vast infrastructure for the distribution and supply of gas in Oyo State. Through this strategic alliance, a more dependable, economical, and ecologically friendly energy supply will support regional industrial and commercial growth.
Key participants in the signing ceremony, including SNG Managing Director Ralph Gbobo and Oyo State Governor Seyi Makinde, finalized the agreement. The project’s first phase entails building a 15-kilometer pipeline that will eventually supply the state with up to 60 million standard cubic feet of gas per day.
In a statement, Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, stated that SNG will construct and run this gas distribution network for 20 years, demonstrating a major commitment to Oyo State’s economic growth. It is anticipated that the first gas supply via this infrastructure would occur in the fourth quarter of 2025.
The initiative was praised by Governor Makinde as a critical step forward for the state and as a perfect fit for Oyo’s goals of promoting industrialization and innovation. “We are willing to engage with additional corporations and other groups to enhance the delivery of relevant projects,” Makinde added, “and this initiative falls into our objective to drive industrialization and innovation in Oyo State.”
Ralph Gbobo emphasized the possible effects of the project on the regional economy. “This gas distribution project would revolutionize the Oyo State Government’s industrialization push by increasing internal revenue and creating new job possibilities,” he declared. This project is a component of Nigeria’s larger “Decade of Gas” effort, which aims to improve natural gas availability throughout the country and promote economic growth.
The Chairman of Shell Companies in Nigeria and Managing Director of The Shell Petroleum Development Company of Nigeria Limited, Osagie Okunbor, emphasized the importance of the project for partnership and advancement. “With more and greener energy solutions for commercial and industrial customers, Shell continues to power progress in Nigeria,” he said. Okunbor highlighted Shell’s dedication to the development of competitive and reliable energy solutions that support power generation and industrial use across Nigeria.
Totally owned by Shell since its founding in 1998, SNG has developed into a major force in the Nigerian gas industry, providing services to more than 150 clients in several states, including Abia, Bayelsa, Ogun, and Rivers.
The Federal Government said recently that only firms capable of constructing and maintaining pipeline networks will be granted licenses for gas distribution in the future. This pipeline proposal falls in accordance with their announcement. This policy is intended to discourage compressed natural gas (CNG) transportation via road and to promote a safer and more efficient distribution model, according to Ekperikpe Ekpo, Minister of State for Petroleum (Gas).
