Shell Nigeria Gas (SNG) has signed a deal to provide gas to industrial and manufacturing companies in Lagos and Ogun states.
The deal will run for 20 years, it said. SNG has signed the agreement with Nigerian Gas Marketing Corp. (NGMC). Shell will also extend its distribution network into Badagry.
“This agreement will enable local industries to thrive and create employment opportunities for Nigerians. We look forward to continuing to grow domestic gas distribution to industries and manufacturing plants in Ogun State and other parts of Nigeria while unleashing the industrial potential of Badagry,” SNG’s managing director Ed Ubong said.
Ubong said the agreement would help increase domestic gas use in Nigeria. He highlighted the industrialisation boon for Agbara, Igbesa and Ota areas of Ogun.
Shell Nigeria’s country chair Osagie Okunbor said the deal would provide “tremendous benefits to the economy”. Shell’s work in Nigeria will “continue to turn Nigeria’s domestic gas opportunities into reality through our strategic intent to develop enough gas to meet our current commitments and future growth plans”.
SNG signed a memorandum of understanding (MoU) with Oyo State in October 2020. The company agreed to develop a master plan for gas and also construct distribution facilities.
The company said it has gas and infrastructure deals covering more than 150 customers, primarily in Ogun, Abia, Oyo, Rivers, Bayelsa and Lagos. In 2019, SNG said it was supplying 100 customers, in Ogun, Abia and Rivers states.
While Shell has withdrawn from some of its onshore assets, offshore production and gas utilisation projects still seem to appeal. The company is working on the Assa North gas development in Imo State, part of the $700 million ANOH plan. Shell’s partner Seplat Petroleum expects first gas at the project in the last quarter of 2021.