Shell signs deal to build gas pipelines in Oyo

Shell Nigeria Gas (SNG) and the Oyo State Government have inked a deal to construct gas pipelines, aiming to supply gas to industrial and commercial users in the state.

In a statement released by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, it was revealed that SNG would oversee the construction and operation of the gas distribution network for 20 years.

The project will kick-off with the development of gas infrastructure along a 15km pipeline route, with plans to eventually deliver up to 60 million standard cubic feet of gas per day across Oyo State.

Expected to commence operations in the fourth quarter of 2025, the project has been hailed by Oyo State Governor Seyi Makinde as a pivotal driver of development in the state.

Makinde emphasized the project’s alignment with the state’s agenda to foster innovation and industrialisation, expressing readiness to collaborate with more entities to facilitate similar initiatives.

Ralph Gbobo, Managing Director of SNG, highlighted the significance of the agreement in advancing economic activities in Nigeria. He underscored the project’s potential to enhance industrialisation, revenue generation, and job creation in Oyo State, characterising natural gas as a reliable, cost-efficient, and eco-friendly energy source.

Osagie Okunbor, Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman of Shell Companies in Nigeria, underscored the value of partnerships in propelling progress.

He emphasized Shell’s commitment to providing cleaner and more accessible energy solutions, echoing the company’s dedication to supporting Nigeria’s energy transition initiatives.

SNG, established in 1998 as a wholly Shell-owned company, has evolved into a major gas supplier, serving over 150 clients across several states in Nigeria.

The Federal Government’s recent stance on gas distribution underscores the importance of projects like these, aiming to curb the transportation of compressed natural gas via roads.

Minister of State for Petroleum (Gas), Ekperikpe Ekpo, reiterated the government’s commitment to transitioning to cleaner energy sources and ensuring efficient gas distribution infrastructure.

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