Shell Challenges Govt On Regulatory Enforcement For Gas-led Industrialisation

The managing director of Shell Nigeria Gas (SNG) Ralph Gbobo, has said that Nigeria can harness its gas resources for industrialisation if it achieves stable regulatory enforcement, fair pricing and infrastructure ownership models in the sector

Speaking at the Energy Week of the Lagos Section of the Society of Petroleum Engineers (SPE), Gbobo said investors need “a stable, fast and transparent implementation” of rules, while a fair pricing regime could be achieved with “the right incentives to grow pipeline gas”, which would also attract more investments. Regarding infrastructure ownership models, he called for completing ongoing projects and ensuring the reliability of the Escravos-Lagos Pipeline System through “clear service standards.”

He said the government could also encourage investments in gas distribution through “demand aggregation.”

“We need to create a friendly business environment and a clear plan (e.g., industrial parks or designated zones) so demand is clustered. That makes it easier for a distributor to get a license, invest, and build shared infrastructure that serves many industries—not just one or two.”

Gbobo added: “Public–private partnership is crucial. Government backing helps planning and delivery. This model can also support industrial parks and other ways to aggregate demand.”