Oyo, Shell Nigeria sign FID on gas distribution infrastructure in the state

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

During the signing ceremony, the Governor of Oyo State, ‘Seyi Makinde, spoke about the project, stating that it will act as a catalyst for development in the state. He further explained that the project aligns with the state’s plan to drive innovation and industrialization and that they are willing to collaborate with more companies and organizations to enhance the delivery of relevant projects. Speaking on the occasion, Ralph Gbobo, the Managing Director of SNG, said that the agreement marks a significant milestone for SNG and Oyo State in boosting economic activities in Nigeria. The project aims to supply industries and manufacturers with natural gas, which is a more reliable, cost-efficient, and environmentally friendly source of energy.

He explained that the gas distribution project would be a game-changer in the Oyo State Government’s industrialization drive. It would 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. The first gas is expected in Q4 2025.

The Chairman of Shell Companies in Nigeria and Managing Director of the Shell Petroleum Development Company of Nigeria Ltd, Osagie Okunbor, said that the recent occasion highlights the significance of the partnership. Shell intends to continue powering progress in Nigeria through cleaner and more advanced energy solutions for commercial and industrial customers.

“With Shell Energy’s wide marketing and trading reach and our long-standing presence in the country since the 1960s, we are enthusiastic about developing gas distribution solutions. Our aim is to offer competitive and reliable energy for power generation and industrial use throughout Nigeria,” he said.

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