By Udeme Akpan, Energy Editor
Gas utilization is set to expand in Nigeria as Shell Nigeria Gas (SNG), has signed a 20-year agreement with manufacturers and other users in Lagos and Ogun States.
In a statement obtained by Vanguard, Shell, which referred to the agreement as, ‘the new deal with the Nigerian Gas Marketing Corporation (NGMC),’ disclosed that, SNG will also extend its distribution network to Badagry to serve a new market in the border community.
Commenting on the development, SNG’s Managing Director, Ed Ubong, said the new partnership would deepen domestic gas utilization in Nigeria, and enhance further industrialization in Agbara, Igbesa, and Ota areas of Ogun State.
He said: “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.”
He acknowledged the support of the Nigerian Gas Company and NGMC over the last 20 years in helping SNG to continue to provide gas to industries and manufacturing plants in Nigeria.
Similarly, Managing Director of NGMC, Engineer Faruk Usman, said he was excited about the agreement which he said would enable the parties to further unlock the potential of the domestic gas market and contribute to industrialization in Nigeria.
Usman said: “We continue to work with credible partners to accelerate the marketing and distribution of natural gas to major industrial users in Nigeria in line with the vision of the Federal Government of Nigeria and the steers of the Group Managing Director of the Nigerian National Petroleum Corporation.”
Also speaking on the long-term deal, Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said the knock-on effects of the gas distribution agreement would bring ‘tremendous benefits to the economy’ in SNG’s states of operation and Nigeria.
Okunbor said: “Shell companies 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 and its partners and local stakeholders have agreements to build infrastructure and deliver natural gas to over 150 industrial and commercial customers, mostly in Ogun, Abia, Oyo, Rivers, Bayelsa and Lagos States.
The agreements aim at driving industrialization, providing employment for the skilled and unskilled local population in addition to directly improving internally generated revenues in these states.