The Oyo state government and Shell Nigeria Gas (SNG) has partnered with Shell Nigeria Gas,(SNG) to develop a gas supply and distribution infrastructure that would ginger delivery of gas to industrial and commercial users in the state.
The duo have therefore signed agreement on building and operation of gas distribution network, which would serve customers across the state for 20 years.
Governor Seyi Makinde while speaking at the signing ceremony on Friday described the project as “a catalyst for development in the state.”
“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,” he said.
In his remarks, the SNG managing director, Ralph Gbobo, disclosed that 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 industrialisation 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 a 15km of pipelines 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.”
The managing director of the Shell Petroleum Development Company of Nigeria Ltd and chairman, Shell Companies in Nigeria, Osagie Okunbor, 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.”