Shell signs agreement to build gas pipelines in Oyo State

The Oyo State Government has partnered with Shell Nigeria Gas (SNG) to develop gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

Gov. Seyi Makinde described the project as “a catalyst for economic development in the state.”

He said: “This project fits into our plan to drive innovation and industrialization in Oyo State, and we are ready to partner with more companies and other organisations to enhance the delivery of relevant projects.”

Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, announced on Friday that SNG will construct and run the gas distribution network for 20 years, serving customers throughout Oyo State.

According to the statement, the Managing Director of SNG, Mr. Ralph Gbobo, 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.”

He explained: “The gas distribution project will be a game-changer in the industrialization drive of the Oyo State Government, 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 begin with the construction of gas distribution infrastructure along a 15-kilometer pipeline route, which will eventually deliver up to 60 million standard cubic feet of gas per day across the state. We anticipate the first gas to arrive in Q4, 2025.

Mr. Osagie Okunbor, Managing Director of the Shell Petroleum Development Company of Nigeria Ltd. and Chairman, Shell Companies in Nigeria, stated: “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.”