AGS NEWS – Shell Nigeria Gas (SNG) and the Oyo State Government have joined forces to establish a gas supply and distribution network, aiming to cater to industrial and commercial consumers within the state.

As per a statement released by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, on Friday, SNG will oversee the development and operation of this gas distribution system across Oyo State for two decades.

The initiative will kick off with the creation of gas distribution infrastructure spanning a 15km pipeline route, with plans to expand its capacity to deliver up to 60 million standard cubic feet of gas daily throughout the state.

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Anticipated to commence in the fourth quarter of 2025, the project received acclaim from Oyo State Governor Seyi Makinde, who hailed it as a significant driver for state development.

Governor Makinde emphasized, “This project aligns with our vision to foster innovation and industrial growth in Oyo State, and we’re eager to collaborate with more entities to advance crucial projects.”

SNG’s Managing Director, Ralph Gbobo, underscored the deal’s importance in elevating economic activities by providing industries and manufacturers with natural gas, a cleaner and more cost-effective energy source.

Gbobo further elaborated, “This gas distribution initiative will revolutionize Oyo State’s industrialization agenda, bolster internally generated revenue, and create numerous employment opportunities.”

Echoing these sentiments, Osagie Okunbor, Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman of Shell Companies in Nigeria, emphasized the strategic significance of collaboration in advancing energy solutions for commercial and industrial consumers.

Okunbor stated, “This partnership underscores Shell’s commitment to advancing energy solutions in Nigeria, leveraging our extensive experience and network to deliver competitive and reliable energy for power generation and industrial applications.”

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SNG, a wholly-owned subsidiary of Shell, has been operational since 1998 and currently serves over 150 clients across Abia, Bayelsa, Ogun, and Rivers states.

Meanwhile, in a separate development, the Federal Government announced plans to cease issuing licenses to gas companies incapable of constructing pipelines for gas distribution.

This move aims to discourage the transportation of compressed natural gas via roads and promote the transition to cleaner energy alternatives.