• Monday, December 23, 2024
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Aba to enjoy uninterrupted gas supply

NGA calls for deregulation of gas value chain

One of the key things in the PIA is that the royalty structure around gas has been separated from oil which will allow investors a clear view on whether they are investing in oil or gas

Things are looking up for Aba, the commercial hub of Abia State, as Shell Nigeria Gas, a wholly Nigerian subsidiary of Shell International Oil firm, says its ongoing Aba City gate gas project will allow it to provide gas to Aba customers without any supply interruption, once completed in 2022.

Sam Pepple, supply manager, Shell Gas Nigeria, revealed this at the 34th annual general meeting of the Imo/Abia State’s branch, of the Manufacturers Association of Nigeria (MAN), held recently in Aba.

This is also as the company in 2020 completed the final phase of its 20 kilometre domestic gas-line expansion project in Abia State, connecting the Osisioma, Ogbor Hill and Ariaria Industrial zones.

Pepple explained that the pipeline has enabled the supply of gas to approximately10 customers, already in Aba, including 7UP, Nicen Industries Limited, Aba Multi plant, Glass force, GZI among others.

The pipeline, according to him, also brings energy to Ariaria Market, one of the largest open markets in West Africa with over 27,000 shops and estimated 2 million traders.

He stated that Shell Nigeria Gas partnered with Ariaria Independent power plant (IPP) to provide them with gas so that they can generate power for all the shops within the area.

A development he observed is empowering the local population, while providing a cheaper and cleaner source of energy.

“We are constantly seeking innovative and efficient ways to provide energy solutions that Nigeria’s commercial and Industrial sectors can afford and rely on.

“Beyond Aba, Shell Nigeria Gas is actively seeking to grow its footprint in the South-East of Nigeria. Today we have plans to supply gas to Imo State and we are working with manufacturing companies in the area to develop a distribution network that expands to Anambra and other States of the Southeast.

Read also: Price of cooking gas rises 63%, to last longer

“As the only wholly Nigerian subsidiary of an international oil company with domestic gas Shell Nigeria Gas is a symbol of Shell’s commitment for clean, sustainable energy access and security in Nigeria and across the globe.

He continued, “Harnessing our vast gas resources is key to the development of the country. Natural gas gives us the ability to lift millions out of energy poverty, giving people the power to improve their physical health, well-being and standard of living.

“It also gives us a pathway to economic growth and development. Not only through direct exploration and trading on gas resources, but by providing reliable power supply for the manufacturing and industrial sectors, which are the major growth engines for developing economies.

This is as he revealed that Shell Nigeria Gas sells gas to industries in Aba, cheaper than in Lagos and Ogun States, to encourage local industries to grow.

He noted that manufacturers in Aba and the wider eastern region must take the opportunity of the technique of gas to suit their energy sources and grow their businesses.

As the president of the Nigerian Gas Association, he promised that Shell would continue to advocate for affordable and reliable gas to energy, under a willing buyer, willing seller commercial framework.

He expressed optimism that Shell would continue to see progress in the manufacturing sector of the economy.

There’s no doubt that manufacturing is key to economic growth of any government and looking across the world, only a few governments have been able to grow their economies without investing heavily in the manufacturing sector.

In the last few decades, we have witnessed the emergence of global economic giants in Asia with growth driven mostly by industrialisation.

This is proof that industrialisation is fundamental for sustainable and positive growth.

But industrialisation can only happen when we have a vibrant manufacturing sector.

In Nigeria, we are starting to see growth in the manufacturing sector and gross domestic product (GDP) contribution from this sector has been increasing over the last couple of years.

However, there are still challenges that need to be addressed for this industry to fully realise its potentials for us to drive inclusive growth in the country.

The major challenge facing manufacturers in Nigeria is access to reliable energy. This means that businesses incurred huge expenses on coal, petrol, diesel and other alternatives, as backups and unreliable grid electricity.

The high cost of power generation increases running cost, hindering local manufacturers to successfully compete in the local and export markets.

Shell Nigeria Gas, is committed to bridging this gap, by providing manufacturing and industrial customers with a clean, reliable, low cost alternative to liquid fuel, which is gas.

Shell Nigeria Gas, has over 120 commercial and industrial customers and has signed agreements with many other customers in Lagos, Ogun, Abia, Rivers and Bayelsa states.

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