BY BANYO TEMITAYO
SHELL Nigeria Gas (SNG) has signed a 20-year agreement with manufacturers in Lagos and Ogun states to deepen domestic gas utilisation.
SNG will also extend its distribution network to Badagry so as to serve a new market in the border community.
The agreement, called, “The new deal with the Nigerian Gas Marketing Corporation (NGMC)”, was disclosed in a statement by Shell.
Managing Director, SNG, Ed Ubong, said the new partnership would deepen domestic gas utilisation in Nigeria, and enhance further industrialisation in Agbara, Igbesa, and Ota areas of Ogun State.
He was quoted as saying, “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.”
The MD 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.
Managing Director, NGMC, Faruk Usman, expressed excitement over the agreement, which he said would enable the parties to further unlock the potential of the domestic gas market, while contributing to industrialisation in Nigeria.
“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,” he said.
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.
“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,” he said.
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 industrialisation, providing employment for the skilled and unskilled local population in addition to directly improving internally generated revenues in these states.
