Gas
Shell Nigeria Gas Engages Stakeholders On Deepening Gas Distribution
Shell Nigeria Gas (SNG) engaged more than 100 gas off-takers in the Agbara Ota industrial zone in Ogun State. Shell Nigeria Gas’ engagement is part of its efforts to deepen gas distribution for power generation by industries and other businesses.
SNG assembled over 100 gas off-takers, including industry partners and government representatives. They discussed strategies for gas supply to industries and businesses.
It interacted with the off-takers in customer forums to receive feedback and explore ways of improving gas supply.
Strengthening Stakeholder Collaboration
Shell Nigeria Gas organized a forum titled “The Natural Gas Partner of Choice, Powering Nigeria.”
Officials from the federal government, Ogun State government, NNPC, and the Manufacturers Association of Nigeria attended the forum.
According to Shell Energy Nigeria’s General Manager, Markus Hector, “Shell’s commitment is to build, operate and maintain a gas distribution system that is reliable, resilient, transparent, and growth-oriented, to support businesses, industries and ambitions.”
Background: Shell Nigeria Gas
Shell Nigeria established Shell Nigeria Gas Limited in 1998. This subsidiary develops, operates, and maintains gas distribution infrastructure and delivers gas to industrial and commercial customers across Nigeria.
As such, it operates over 150 kilometers of pipeline infrastructure, supplying natural gas to more than 100 manufacturing and power generation customers in key industrial zones such as:
- Ogun State (notably the Agbara-Ota industrial cluster)
- Rivers State
- Abia State
In March 2024, SNG signed a $100 million agreement with Oyo State to develop a gas supply and distribution network for industrial and commercial users across the state.
Under the 20-year deal, SNG will construct and operate the pipeline network, which is expected to deliver up to 60 million standard cubic feet of gas daily.
Consequently, the project will begin with a 15-kilometer pipeline and is expected to bring its first gas flow in Q4-2025.
| Customer / Project | Sector | Location | Details |
| Brass Fertilizer and Petrochemical Co. | Petrochemicals | Bayelsa State | To receive 270 million scf/day of gas for a $3.5 billion fertilizer plant |
| Industrial Clusters in Oyo State | Manufacturing & Power | Ibadan, Lagos-Ibadan Axis | Up to 60 million scf/day to be delivered via a 15-km gas pipeline |
| CNG Companies (various) | Energy / Distribution | Multiple locations in Nigeria | SNG supplies bulk gas for further distribution via trucks |
| Industrial Clients in Agbara-Ota Area | Manufacturing | Ogun State | Includes food processing, pharmaceuticals, packaging, etc |
| Aba Cluster Clients | Manufacturing & Power | Abia State | Cluster of SMEs and large industries supported by direct gas supply |
| Port Harcourt Cluster Clients | Industrial & Commercial | Rivers State | Industries using gas for power generation and processing needs |
Alignment with the “Decade of Gas” Initiative
In March 2021, the federal government established the “Decade of Gas.” This government initiative aims to harness the country’s vast gas reserves to drive economic growth and development.
Under the plan, the government will ramp up gas use in the decade from 2020 to 2030 in partnership with other stakeholders.
Shell Nigeria Gas supports the government’s Decade of Gas initiative through:
- Expansion into Oyo State to supply gas to industries in the State.
- Ongoing engagement with its key customers and partners to deepen gas distribution.
The Special Adviser to the President on Energy, represented by the Team Lead, Gas, Lateef Biobaku, shared the government’s vision for the oil and gas industry. He stated, “Our vision is to unlock Nigeria’s energy potential, to help fuel economic growth, to drive industrialization, and to help diversify our economy. The aim is to attract investments to help raise oil and gas production to 4 million barrels per day and 12 billion cubic feet of gas per day by 2030.”