Shell Signs $100m Agreement To Build Gas Pipelines in Oyo, Lists 20 years Benefits

• Shell has reached an agreement with Oyo state government to construct gas pipelines in the State
• The agreement marks a significant milestone in the Oyo state's energy infrastructure development
• Benefits of the project shell believes will last for over the next 20 years and this include improved energy access

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

Shell Nigeria Gas hassigned an agreement worth over $100 million with the Oyo State Government to construct gas pipelines in the state that will help in the supply and distribution of gas to industrial and commercial users in the state for 20 years.

On Friday, May 3, 2024, a press release from Abimbola Essien-Nelso, Shell Nigeria’s Media Relations Manager, revealed that SNG intends to construct and manage a gas distribution network which will serve customers across Oyo State.

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According to the statement, the project will start with the construction of gas distribution infrastructure along a 15km pipeline route, adding that it will grow to deliver up to 60 million standard cubic feet of gas per day across the state.

Shell, Oyo state government reacts to pipeline project

Speaking at the signing ceremony, the Oyo State Governor Seyi Makinde, described the project as a catalyst for development in the state, Punch reports.

Makinde said:

"This project aligns perfectly with our strategy to foster innovation and industrialization in Oyo State. We are fully prepared to collaborate with additional companies and organisations to further advance the execution of relevant projects."

Also, the Managing Director of SNG, Ralph Gbobo, noted tha gas distribution project will be a game-changer in the industrialisation drive of the Oyo State Government and help boost internally generated revenue and result in more job opportunities.

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His words:

"For SNG, this project marks a significant milestone in our ongoing endeavor to expand energy supply to businesses in Nigeria, aligning with the nation's ambition to propel progress through increased natural gas accessibility nationwide, as part of the Decade of Gas initiative."

Nigeria attracts $5bn investment from Shell

Legit.ng earlier reported that Shell reiterated its committed to investing $5 billion in offshore oil investment opportunities in Nigeria.

In addition, the global group of energy and petrochemical companies pledged to spend a further $1 billion in five to 10 years to boost natural gas output for domestic supplies and exports.

According to a Reuters report, a presidential spokesperson, Ajuri Ngelale, made the announcement.

Source: Legit.ng