Oyo Partners with Shell Nigeria to Develop Gas Distribution Network

Business/Economy

Oyo Partners with Shell Nigeria to Develop Gas Distribution Network

Reported by Ibadan Media

The
Oyo State government and Shell Nigeria Gas (SNG) have signed an agreement to
build a gas supply and distribution infrastructure that will deliver gas to
industrial and commercial users in the state. SNG
will operate the gas distribution network which will serve its customers in Oyo
State, for 20 years.

Oyo
State governor, Seyi Makinde, speaking at the signing ceremony, 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 organisations to enhance the delivery of relevant projects.’’

The
managing director of 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 continued by saying “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 development project will start
with constructing gas distribution infrastructure along 15km of pipeline
routes. It 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.

Chairman,
of Shell Companies in Nigeria and Managing Director of the Shell Petroleum
Development Company of Nigeria Ltd, Osagie Okunbor said ‘’This event points to
the value of partnerships 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.”