Oyo Govt. Partners Shell to Build Gas Distribution Network

Oyo State Government and Shell Nigeria Gas (SNG) have signed an agreement to develop gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

The agreement, signed on Friday in Ibadan, will allow SNG to build and operate gas distribution network, which will serve customers across the state for 20 years.

Speaking at the signing ceremony, Gov Seyi Makinde described the project as a catalyst for development in the state.

According to Makinde, the project fits into his administration’s plan to drive innovation and industrialisation in the state.

“We are ready to partner with more companies and other organisations to enhance delivery of relevant projects,” he said.

Managing Director of SNG, Mr Ralph Gbobo, said the agreement was a significant milestone for SNG and the state to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas.

Gbobo stated that it would be in a more reliable, cost-efficient and environmentally friendly source of energy.

He added that the gas distribution project would be a game-changer in the industrialisation drive of the state government.

According to him, it will help to boost the state’s internally generated revenue (IGR) and enhance more job opportunities.

“For SNG, the project is a milestone in our efforts to continue growing the energy supply to businesses in Nigeria, in line with the country’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 15 kilometres of pipeline route and will grow to deliver up to 60 million standard cubic feet of gas per day across the state,” he said.

In his remarks, the Managing Director of SPDC Nigeria Ltd., Mr Osagie Okunbor, said the signing of the agreement was a pointer to the value of partnership, as the firm continued to power progress in Nigeria.

Okunbor said that this would result in more and cleaner energy solutions for commercial and industrial customers in the state.