Shell Nigeria Gas (SNG) is to facilitate domestic gas infrastructure development in Oyo State following the signing of a Memorandum of Understanding (MoU) with the state government last week.
The pact targets the distribution of cleaner and more reliable gas energy to industries in the state through a distribution network with potential for around 50 million standard cubic feet of gas per day, starting from the state capital, Ibadan, as the point of first entry.
The MoU, according to SNG, sets out broad terms and conditions to guide co-operation between the two parties for the project development and delivery. It was signed at the Oyo State Government House Wednesday, September 30, 2020 by Managing Director of SNG, Ed Ubong, and the state governor, Oluseyi Makinde.
The governor described the agreement with SNG as critical in the state’s efforts to boost industrialisation and enhance economic development while improving access to power for both residential and industrial areas in the state.
“We believe that the agreed terms in the MoU will lead to the signing of the Build-Operate-Own-and Transfer agreement so that businesses can begin to reap the benefits of a steady source of energy,” Makinde said.
Ubong said, “The partnership is an opportunity to further improve domestic gas utilisation in Nigeria, enabling local industries to thrive and create employment opportunities for Nigerians.”
In another development, SNG has commissioned an indigenous contractor, Gredor Nigeria Limited, to begin the construction of the gas pipeline infrastructure to deliver gas to the Nigeria Content Development and Monitoring Board Industrial Park in Polaku, Bayelsa State.
SNG had earlier in the year acquired the lease of one hectare of land in Polaku for the gas project which will supply gas for industries in the park and the environs. The project is expected to be delivered within six months.
Ubong said the Polaku project would boost industrialisation in Bayelsa State and provide employment opportunity for skilled and unskilled local population in addition to directly improving internally generated revenues in the state.
He said, “The project will increase the over 150 industrial and commercial customers in Nigeria who currently receive SNG’s supply of natural gas through gas infrastructure that we have built with our partners and local stakeholders.”
Responding to the expansion of SNG as distribution network, Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said Shell was positioned to continue to optimise its onshore footprint while investing in gas.
“For more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria’s huge gas resources. SNG continues to demonstrate leadership in this space, growing the domestic gas market and also helping to improve lives in every state it operates,” Okunbor said.
SNG recently completed 20 kilometres domestic gas pipeline expansion project in Abia State, connecting Agbor Hill, Osisioma and Ariaria industrial zones. The expansion project has enabled the supply of pipeline gas to Ariaria Market Energy Solutions Limited, the Independent Power Project (IPP) consortium that provides electricity to the popular Ariaria market in Abia State.
Ariaria International Market is said to be one of the largest leather shoe-making and open stall markets in West Africa, with over 37,000 shops and an estimated one million traders.