In a statement released on Friday by Abimbola Essien-Nelson, Shell Nigeria’s Media Relations Manager, it was revealed that SNG will be responsible for building and operating the gas distribution network in Oyo State for the next 20 years.

The initial phase of the project will involve constructing gas distribution infrastructure along a 15km pipeline route, with plans to expand to deliver up to 60 million standard cubic feet of gas per day throughout the state. The project aims to commence gas supply by the fourth quarter of 2025.

Oyo State Governor Seyi Makinde hailed the project as a catalyst for development in the state, emphasizing its alignment with the state’s objectives to drive innovation and industrialization. He expressed readiness to collaborate with more companies and organizations to facilitate such projects.


Managing Director of SNG, Ralph Gbobo, described the agreement as a significant milestone for both SNG and Oyo State, highlighting the economic benefits of supplying industries with natural gas. He emphasized that the project would enhance industrialization, boost revenue generation, and create more job opportunities in the state.

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The Shell Petroleum Development Company of Nigeria Limited’s Managing Director and Chairman of Shell Companies in Nigeria, Osagie Okunbor, underscored the importance of partnerships in advancing Nigeria’s energy sector. He reiterated Shell’s commitment to delivering cleaner and more reliable energy solutions to commercial and industrial customers.

SNG, established in 1998 as a wholly-owned Shell company, has become a leading supplier of gas, serving over 150 clients across Abia, Bayelsa, Ogun, and Rivers states.

Meanwhile, the Federal Government has announced plans to cease granting licenses to gas companies without the capacity to build gas distribution pipelines. Minister of State for Petroleum (Gas), Ekperikpe Ekpo, disclosed this in Abeokuta, Ogun State, emphasizing the need to discourage the transportation of compressed natural gas via roads. Ekpo directed the Nigerian Midstream and Downstream Regulatory Authority not to issue licenses to entities unable to pipe compressed natural gas to end-user