Shell Nigeria Gas increases gas distribution capacity by 150 per cent

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By Ikenna Omeje

Shell Nigeria Gas (SNG), a  wholly-owned subsidiary of Shell Nigeria, has increased its gas distribution capacity by over 150 per cent following the  completion of its second gas train, the Agbara-Ota Capacity Increase Project.

The  facility is expected to aid SNG and its partners to achieve regular gas supply to subscribed industries in Ogun State while efforts are ongoing to reach more states.

The Media Relations Manager of  Shell Nigeria, Mr. Bamidele Odugbesan, quoted the Managing Director, SNG, Ed Ubong, to have 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.”

The first phase of the pipeline expansion project  began in Abia State with the completion of the pipeline gas, connecting manufacturing industries in the Osisioma area directly. It will also deliver pipeline gas to the IPP consortium that provides electricity to Ariaria market in the state – one of the largest open stall markets in West Africa, with over 37,000 shops. The 1st Phase of the Ariaria IPP project  which was commissioned by President Muhammadu Buhari  some months back,  currently provides electricity to over 4,000 shops.

“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.

“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, “ Ubong said.

Recall that 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 ‘Lights Up Lagos’ initiative. Efforts are on-going through partnerships to develop opportunities for natural gas distribution to wholesale and retail customers in Victoria Island, Ikoyi, Lekki and Epe areas of Lagos area.

Ubong noted that SNG in collaboration with the Nigerian Content Development and Monitoring Board ((NCDMB) and the Bayelsa State Government has signed agreements with customers to supply gas to parks and industrial clusters in the state.

He said, “This year, in collaboration with the Nigerian Content Development & Management Board 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”.

On corporate social responsibility, Ubong said that SNG has implemented various social and community development projects which cut across education, community health, road safety and livelihood in areas of its operations.

He added that  SNG has maintained a 14-year streak of successful ISO 14001 certification and recently achieved 10 years of operating without any lost time injuries

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