Shell Identifies Strategic Pathways For Nigeria To Advance Gas Utilisation

 

Shell Nigeria Gas (SNG) has identified ways through which Nigeria can boost its natural gas utilisation rate. 

While sharing its experiences as one of the pioneers of gas distribution in Nigeria nearly 30 years ago at the just-concluded 2nd business forum of the Association of Local Distributors of Gas (ALDG) in Abuja, Managing Director of SNG, Ralph Gbobo, who was represented by Head, Gas Distribution, Chukwuka Amos-Ejesi said the expansion of pipeline natural gas infrastructure and the market‑making role of gas distributors are critical in moving gas from a policy aspiration to a practical energy solution for Nigerian industries.

He recalled when the SNG started in Agbara over 20 years ago.

“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” Gbobo recalled at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand.

“The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”

He said persistence, however, proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial lusters that can grow and attract long-term capital. “Sustainability and bankability emerge over time, as utilisation deepens and confidence builds,” he pointed out.

The theme of the forum was “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” with industry leaders and other stakeholders discussing the use of gas to drive industrialisation.

 

 

The panel session agreed on the need for “clear, supportive and credible policy frameworks, especially measures designed to improve the use of gas.

Ralph noted: “The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code- a critical framework that governs the operations of the Domestic Gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation, which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development.”

He added: “The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime, has also strengthened market confidence.

“Together, these measures have improved producer confidence, particularly for domestic gas projects, and signaled government’s strong commitment to gas as a driver of industrial development”, he noted.

 

 

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Incorporated in 1998 as a fully Shell-owned gas distribution company, SNG currently serves over 150 clients in Abia, Bayelsa, Ogun, and Rivers states, partnering with governments and other stakeholders to take the cleaner and more affordable energy to the doorsteps of industries.

In the first half of this year alone, the company has connected two additional companies in Ogun State to its gas distribution network.

 

 

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