In a move set to revolutionize the energy landscape in Oyo State, the government has inked a groundbreaking agreement with Shell Nigeria Gas (SNG) to construct and operate a state-of-the-art gas supply and distribution infrastructure. The collaboration aims to provide a reliable and sustainable source of energy to industrial and commercial entities across the region.
Under the terms of the agreement, SNG will oversee the development and management of the gas distribution network for a period of 20 years, heralding a new era of economic growth and development in Oyo State.
Governor ‘Seyi Makinde, lauding the initiative as a “catalyst for development,” emphasized its alignment with the state’s strategic vision to drive innovation and industrialization. He expressed readiness to engage with additional partners to expedite the execution of transformative projects.
Ralph Gbobo, Managing Director of SNG, hailed the partnership as a significant milestone in advancing economic activities in Nigeria. He highlighted the pivotal role of natural gas in powering industries and manufacturers, citing its reliability, cost efficiency, and environmental sustainability.
The gas distribution project, slated to commence with the construction of infrastructure spanning 15 kilometers, is projected to scale up to deliver a staggering 60 million standard cubic feet of gas per day across Oyo State. Anticipated to commence operations in Q4 of 2025, the initiative is poised to catalyze industrialization, spur revenue generation, and create employment opportunities within the state.
Osagie Okunbor, Managing Director of the Shell Petroleum Development Company of Nigeria Ltd and Chairman of Shell Companies in Nigeria, underscored the significance of the partnership in advancing Nigeria’s energy agenda. He reaffirmed Shell’s commitment to leveraging its expertise and resources to drive progress through cleaner and more sustainable energy solutions.
The strategic collaboration between the Oyo State Government and Shell Nigeria Gas represents a paradigm shift towards harnessing the potential of natural gas to propel economic growth and sustainable development in Nigeria.
