Oyo State Government and Shell Nigeria Gas (SNG) have signed an agreement to develop gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.
This was announced by Oyo State Governor, Seyi Makinde, via a post on his X account on Friday, May 3, 2024.
Makinde disclosed that the agreement was signed in London, the United Kingdom.
The governor noted that the project involves the construction of a Pressure Reduction and Metering Station (PRMS) and the laying of pipelines by SNG on a Build-Own-Operate-Transfer (BOOT) basis.
He stated: “We were in London to sign the final investment agreement for the Oyo State Government-Shell Nigeria Gas Infrastructure Development and Distribution project.
“This gas project worth about $100 million, involves the construction of a Pressure Reduction and Metering Station (PRMS) and laying of pipelines by SNG on a Build-Own-Operate-Transfer (BOOT) basis. Ownership will be transferred to Oyo State after 20 years.
“With this agreement in place, we are looking forward to the first flow of gas to industrial, manufacturing and commercial entities as well as our independent power project in Oyo State in 18 months.”
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On his part, the Managing Director of Shell, Ralph Gbobo, described the agreement as a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas.
Gbobo said it would be a more reliable, cost-efficient, and environmentally friendly source of energy.
He added that the gas distribution project would be a game-changer in the industrialisation drive of the Oyo State Government.
According to him, it will help to boost the state’s Internally Generated Revenue (IGR) and enhance more job opportunities.
Gbobo said: “For SNG, the project is a milestone in our efforts to continue growing the energy supply to businesses in Nigeria, in line with the country’s ambition to drive progress on the back of natural gas availability across Nigeria, under the Decade of Gas Initiative.
“The project will start with the construction of gas distribution infrastructure along 15 kilometres of pipeline route and will grow to deliver up to 60 million standard cubic feet of gas per day across the state.”
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