- SNG operates a domestic gas supply network supplying gas to over 130 manufacturing and industrial customers in Abia, Ogun and Rivers States.
- Shell expects the SNG Bypass Project to come online in Q1 of 2024.
The Managing Director of Shell Nigeria Gas Limited (SNG), Mr Ralph Gbobo, has assured manufacturers that Shell will continue collaborating with industry stakeholders and the government to resolve the industry’s current domestic gas supply challenges. During Nigeria’s largest manufacturing equipment and raw material expo, organised by the Manufacturers Association of Nigeria in Lagos, Gbobo restated the company’s commitment to provide manufacturing and industrial customers with clean, reliable, low-cost alternatives to liquid fuel and to assist in building a more robust economy.
He said, “Immediate implementation, at zero cost to the government, of initiatives such as enforcing discipline and transparency in the gas transportation network operation, enforcing contractual terms across the gas value chain and implementing the Network Code, and enforcement of gas system balancing, are proposals that would provide the critical foundation for other (medium and long term) solutions. Solutions include upgrading existing transportation infrastructure, completing critical gas pipelines and network interconnectivity, promoting a willing-buyer/ willing-seller marketplace, setting globally competitive fiscals for gas, and improving regulator efficiency and effectiveness.”
According to him, the domestic gas market faces challenges that include limited processing and transportation infrastructure, inadequate measurement and control systems, non-implementation of the Petroleum Industry Act (PIA) and Network Code, lack of transparency in gas injections and offtake, and non-enforcement of gas system balancing. He reaffirmed Shell’s commitment to the Federal Government’s ‘Decade of Gas’ ambition to increase domestic gas consumption and boost gas-based industrialisation, as well as to the full implementation of the Gas Transportation Network Code and the upcoming SNG Bypass Project, expected to come online in Q1 of 2024.
SNG has built and operates an extensive distribution network supplying gas to over 130 manufacturing and industrial customers in Abia, Ogun and Rivers States. Other gas market initiatives SNG has championed are a partnership with Oyo State to accelerate the infrastructure development of domestic gas and an agreement with the Nigerian Content Development and Monitoring Board (NCDMB) to provide gas infrastructure to the NCDMB industrial gas park in Polaku, Bayelsa State, with estimated potential employment opportunities exceeding 30,000.