Shell Seeks Gas Infrastructure Expansion To Address Nigeria’s Energy Need

Shell Nigeria Gas (SNG) says it is creating infrastructure projects that will enable gas supply across Nigeria’s energy value chain in a bid to meet the country’s demand.

The firm said it has been sharing its experiences as it pioneered gas distribution nearly 30 years ago, saying the expansion of pipeline natural gas infrastructure and the market‑making role of gas distributors have been critical in moving gas from a policy aspiration to a practical energy solution for Nigerian industries.

“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” recalled the managing director, Ralph Gbobo at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand” at the 2nd business forum of the Association of Local Distributors of Gas (ALDG) in Abuja late last week. Ralph who was represented by Head, Gas Distribution, Chukwuka Amos-Ejesi said: “The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”

He said SNG’s persistence proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial lusters that can grow and attract long-term capital. “Sustainability and bankability emerge over time, as utilization deepens and confidence builds,” he pointed out.

The theme of the forum was “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” with industry leaders and other stakeholders discussing the use of gas to drive industrialisation. The panel session agreed on the need for “clear, supportive and credible policy frameworks, especially measures designed to improve the use of gas.

Ralph noted: “The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code- a critical framework that governs the operations of the Domestic Gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development.”

He added: “The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime, has also strengthened market confidence. Together, these measures have improved producer confidence, particularly for domestic gas projects, and signaled government’s strong commitment to gas as a driver of industrial development.”

Incorporated in 1998 as a fully Shell-owned gas distribution company, SNG currently serves over 150 clients in Abia, Bayelsa, Ogun and Rivers states, partnering with governments and other stakeholders to take the cleaner and more affordable energy to the doorsteps of industries. In the first half of this year alone, the company has connected two additional companies in Ogun State to its gas distribution network.