Shell Signs $100m Gas Pipeline Deal with Nigeria’s Oyo State
05.07.2024 By Tank Terminals - NEWS

May 07, 2024 [Storage Terminal Magazine]- In an agreement surpassing $100 million, the Oyo State Government and Shell Nigeria Gas (SNG) have embarked on a transformative venture to establish a robust gas supply and distribution infrastructure aimed at serving industrial and commercial entities within the state.

 

A statement released by Abimbola Essien-Nelson, Shell Nigeria’s media relations manager, on Friday revealed the comprehensive scope of the collaboration. SNG is slated to spearhead the construction and operation of a gas distribution network spanning Oyo State for a duration of two decades.

Commencing with the laying of groundwork for a 15-kilometre pipeline route, the initiative is projected to escalate, facilitating the delivery of up to 60 million standard cubic feet of gas daily across the state. Ralph Gbobo, the managing director of SNG, underscored the agreement’s significance in fortifying economic pursuits within Nigeria. He emphasised the pivotal role natural gas plays as a dependable, cost-effective, and environmentally sustainable energy source for industries and manufacturers.

Governor Seyi Makinde, in a statement shared via his official channel, highlighted the landmark deal signed in London, affirming its substantial investment of approximately $100 million. The project entails the establishment of a pressure reduction and metering station and pipeline installation by SNG under a Build-Own-Operate-Transfer framework. Makinde articulated the anticipated benefits, including enhanced revenue generation, job creation, and accelerated industrialization across Oyo State.

Further insights were provided by Osagie Okunbor, managing director of the Shell Petroleum Development Company of Nigeria Ltd and chairman of Shell Companies in Nigeria. Okunbor reiterated Shell’s commitment to advancing Nigeria’s energy landscape, leveraging strategic partnerships to deliver cleaner and more accessible energy solutions to commercial and industrial stakeholders. He expressed enthusiasm for deploying gas distribution innovations to support power generation and industrial operations nationwide, building upon Shell’s extensive presence and expertise in Nigeria dating back to the 1960s.

 

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