KEY POINTS
- Shell says expanding gas infrastructure and distribution networks is key to boosting Nigeria’s industrial gas usage.
- The Petroleum Industry Act and related policies have improved investor confidence in the gas sector.
- SNG continues to expand its operations, currently serving over 150 industrial clients across multiple states.
Shell Nigeria Gas, SNG, has identified key strategies Nigeria can adopt to significantly improve its natural gas utilisation and unlock industrial growth.
The company says expanding pipeline infrastructure and strengthening the role of gas distributors are critical steps in turning Nigeria’s gas potential into a reliable energy source for industries.
This was disclosed at the 2nd Business Forum of the Association of Local Distributors of Gas (ALDG) in Abuja. Speaking at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand,” SNG Managing Director Ralph Gbobo, represented by Chukwuka Amos-Ejesi, stressed the importance of long-term investment in gas distribution systems.
He recalled SNG’s early operations in Agbara over two decades ago, noting that demand at the time was low but has since grown significantly due to industrial expansion.
According to him, the success of gas distribution depends on a combination of demand growth, supply reliability, infrastructure development, and clear commercial frameworks.
Policy Reforms Boost Confidence in Gas Sector
Gbobo highlighted the impact of the Petroleum Industry Act (PIA), describing it as a turning point in Nigeria’s gas development journey.
He said the law has helped reduce policy uncertainty by strengthening regulatory frameworks such as the Domestic Gas Supply Obligation and the Gas Network Code, which promote transparency and stability in the market.
He also noted that improved pricing structures and licensing reforms have helped increase investor confidence in domestic gas projects.
Founded in 1998 as a wholly Shell-owned company, SNG currently supplies gas to over 150 industrial customers across Abia, Bayelsa, Ogun, and Rivers States.
The company said it continues to collaborate with government and private stakeholders to deliver cleaner and more affordable energy to industries.
It also revealed that in the first half of 2026, it connected two additional companies in Ogun State to its gas distribution network. Participants at the forum agreed that Nigeria needs stronger and more consistent policy frameworks to fully unlock its gas potential.
They emphasised that clear regulations, improved infrastructure, and market stability are essential to attracting long-term investment and expanding industrial gas usage across the country.
