Shell Signs Agreement to Build Gas Pipelines in Oyo State

In a recent development for Oyo State’s energy infrastructure, Shell Nigeria Gas (SNG) and the Oyo State Government have entered into a pivotal agreement to construct a gas supply and distribution network. The initiative aims to provide gas to industrial and commercial consumers within the state.

The agreement, announced by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, outlines SNG’s commitment to build and manage the gas distribution infrastructure for a period of 20 years. Initial plans entail the construction of a 15km pipeline route, with the capacity to deliver up to 60 million standard cubic feet of gas per day across Oyo State.

Scheduled to commence operations in the fourth quarter of 2025, the project has been lauded by Oyo State Governor Seyi Makinde as a catalyst for the state’s development agenda. Makinde emphasized the project’s alignment with efforts to foster innovation and industrialization, expressing readiness to engage further with corporate entities to facilitate similar initiatives.

Managing Director of SNG, Ralph Gbobo, hailed the agreement as a significant milestone, highlighting its potential to bolster economic activity by providing industries and manufacturers with a reliable, cost-efficient, and environmentally friendly energy source. Gbobo emphasized the project’s role in driving industrialization and job creation, in line with Oyo State’s objectives.

Osagie Okunbor, Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman of Shell Companies in Nigeria, underscored the importance of partnership in advancing Nigeria’s energy landscape. Okunbor emphasized Shell’s commitment to delivering cleaner energy solutions to commercial and industrial clients, leveraging decades of experience and expertise in the Nigerian market.

Established in 1998 as a wholly-owned subsidiary of Shell, SNG has evolved into a leading gas supplier, serving over 150 clients across Abia, Bayelsa, Ogun, and Rivers states.

In related developments, the Federal Government announced plans to cease issuing licenses to gas companies lacking the capacity to construct gas distribution pipelines. Minister of State for Petroleum (Gas), Ekperikpe Ekpo, cited the need to transition from fossil fuels to compressed natural gas (CNG) while directing regulatory authorities to enforce stringent criteria for licensing.