Shell expands gas distribution capacity in Nigeria

By Oke Peter

Shell Nigeria Gas says it has increased its gas distribution capacity by over 150 percent following the safe completion of its second gas train, the Agbara-Ota Capacity Increase Project.

The facility enables SNG and its partners to achieve regular gas supply to subscribed industries in Ogun State while efforts are ongoing to reach more states, according to a statement.

The Managing Director, SNG, Ed Ubong, said, “Apart from increasing the distribution capacity in existing states where it operates, SNG is maturing opportunities to expand its gas distribution network to new states.

“On completion of its expansion projects, over 1,000 megawatts equivalent of energy will be directly supplied to various industrial parks and manufacturing companies in Nigeria.”

Ubong spoke at the recent media launch of the 2019 edition of the ‘Shell in Nigeria Briefing Notes’, an annual publication detailing the activities of the business interests of the global energy giant in Nigeria.

According to the statement, SNG completed the first phase of its pipeline expansion in Abia State, connecting manufacturing industries in the Osisioma area directly to pipeline gas.

It said pipeline gas would also be delivered to the IPP consortium in charge of the provision of electricity to the popular Ariaria market in Abia State – one of the largest open stall markets in West Africa, with over 37,000 shops.

The first phase of the Ariaria IPP project inaugurated by President Muhammadu Buhari in 2019 currently provides electricity to over 4,000 shops, according to the statement.

Ubong said, “Shell, as a leading energy company, is committed to supporting the Federal Government’s aspiration to grow the domestic gas market, making domestic infrastructure investments under the right commercial conditions and continuing to birth domestic gas projects that will be major game-changers in Nigeria’s quest for cleaner energy sufficiency, industrialisation and economic growth.”

Shell

According to the statement, SNG currently supplies natural gas to over 100 industrial and commercial customers, mostly in Ogun, Abia, and Rivers States.

“This drives industrialisation, providing employment for the skilled and unskilled local population in addition to directly improving internally generated revenues in these states,” he added.

In 2017, SNG entered into an agreement with the Rivers State Government for the distribution of gas to industries in the Greater Port Harcourt area and its environs. In 2018, it explored opportunities to distribute gas to the Lagos State Government as part of the embedded power ‘Light Up Lagos’ initiative.

SNG said efforts were ongoing through partnerships to develop opportunities for natural ga as distribution to wholesale and retail customers in Victoria Island, Ikoyi, Lekki and Epe areas of Lagos area.

Ubong said, “This year, in collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) and the Bayelsa State Government, SNG has signed commercial agreements with customers to supply gas to industrial clusters and parks in Bayelsa State, close to the SPDC JV Gbaran Ubie world-class gas facility. Agreements have also been signed for offtake of the Assa North gas project in Imo State.”

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