Oyo partners Shell Nigeria to drive industrial gas supply network

…To produce 60 million scf/d

…First gas expected Q4 2025

Moved by the influx of manufacturing firms to the State, the Oyo State Government has sealed a deal with Shell Nigeria Gas (SNG) on the construction of gas infrastructure and supply network that will feed industrial clusters and offer alternative energy source for the manufacturing plants, thereby, stimulating industrial growth.

BusinessDay observes an influx of manufacturing plants dotting both existing and emerging industrial clusters such as the Oluyole Industrial estate, Ibadan end of Lagos-Ibadan Expressway, Ibadan-Ile-Ife Expressway and Ibadan-Oyo-Ilorin Expressway which need an alternative energy source for manufacturing activities, hence, the Oyo State Government is partnering Shell Nigeria Gas (SNG) to deliver gas to industrial and commercial users in the State.

The Memorandum of Understanding (MoU) signed between Shell Nigeria Gas (SNG ) and the Oyo State Government, according to the official statement, shows that Shell Nigeria Gas will build and operate the gas distribution network within the State, serving both industrial and commercial users across the State for 20 years.

Speaking at the MoU signing ceremony held in Ibadan, the Oyo State Capital, Governor Seyi Makinde described the project as “a catalyst for development in the State”, adding, “This project fits into our plan to drive innovation and industrialisation in Oyo State and we’re ready to partner with more companies and other organisations to enhance the delivery of relevant projects.”

But, Ralph Gbobo, Managing Director, Shell Nigeria Gas (SNG), 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.

“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 project will start with the construction of gas distribution infrastructure along 15km of pipeline route and will grow to deliver up to 60 million standard cubic feet of gas per day across the State. First gas is expected Q4, 2025.

Also, Osagie Okunbor, Managing Director of the Shell Petroleum Development Company of Nigeria Limited and Chairman, Shell Companies in Nigeria, said: “This event points to the value of partnership 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.”